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Getrag's Driveline Products business to be acquired by GKN
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Not many may have heard of a company called GKN. The company made driveline components for the Mitsubishi Lancer Evolution X. Ring a bell now? Read on to know about GKN's future business plans
GKN has announced that it is going to acquire Getrag Corporation’s all-wheel-drive components business. The cost of acquisition includes a £283 million cash transaction and a deferred consideration of up to £12 million depending on the ability of Getrag Driveline Products’ success in achieving future business awards. The transaction is to be closed by September 2011 subject to regulatory approvals and customary conditions.
GKN is going to acquire Getrag Driveline Products which includes ‘Getrag Corporation’ a joint venture with Dana Corporation in the United States and ‘Getrag All Wheel Drive AB’ a joint venture with Dana Holding Corporation and Volvo Car Corporation in Sweden.
The core business of Getrag Driveline Products is Tier 1 supply of geared driveline products that include Power Transfer Units (PTU), Final Drive Units (FDU) for high performance rear wheel drive cars and Rear Drive Units (RDU) for All-Wheel-Drive vehicles. There are also activities that target future supply of transmission systems and axles for hybrid and electric vehicle drivelines.
The CEO of GKN Driveline, Mr Nigel Stein, commented on the business move by saying, “This acquisition is a significant step forward for Driveline, accelerating our strategy for growth in AWD systems and hybrid/electric drivetrains. Production of AWD vehicles is forecast to grow at above market rates reflecting increasing demand globally for crossover vehicles and compact SUVs. Combining our engineering and technology resources will strengthen our ability to provide customers with leading-edge technology, fuel-efficient solutions and to develop next generation drivelines.”
The acquisition of Getrag Driveline Products and integration with GKN Driveline will be a go well with GKN’s existing range of products and technology. Getrag Driveline Products operates in the United States and Europe while GKN is predominantly based in Asia, the combined venture will be aimed at becoming a leading player in AWD driveline products. As part of the transaction GKN is also acquiring an exclusive licence principally for Europe and the US to Getrag’s electric drivetrain technology for hybrid and electric cars.
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