GKN agrees sale of Stromag arm

GKN has agreed the sale of its Stromag business – part of the GKN Land Systems division – to Altra Industrial Motion Corp for a cash consideration of €184 million and the transfer of debt-like obligations of approximately €14 million.

Completion of the transaction is expected to take place in the first quarter of 2017 subject to the conclusion of Works Council consultation and information procedures in France and Germany and merger control clearance in Germany.

Stromag supplies brakes, clutches and highly flexible couplings to the agricultural, construction, industrial and renewable energy markets. Total sales in 2015 were €131 million.

At 1:11pm: (LON:GKN) GKN PLC share price was +1.15p at 324.15p

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