GKN To Sell Stromag Business To Altra For Enterprise Value Of EUR 198 Mln

(RTTNews) - GKN plc (GKN.L)said that it has agreed the sale of its Stromag business to Altra Industrial Motion Corp. for a cash consideration of 184 million euros or 164 million pounds and the transfer of debt-like obligations of approximately 14 million euros or 13 million pounds for a total enterprise value of 198 million euros or 177 million pounds.

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.

Altra expects the acquisition to be accretive to its earnings in 2017, excluding any one-time or acquisition-related costs.