Altra Industrial Motion Acquires Stromag in Deal Estimated at $215.5 Mln

Altra Industrial Motion (AIMC) said Friday it has acquired GKN’s Stromag business for an estimated $216 million comprised of EUR184 million ($200.5 million) in cash and the assumption of EUR14 million in debt, the company said Friday.

The deal brings the company another expected line of revenue, as Stromag brought in approximately EUR131 million in revenue last year. Stromag specializes in the production of clutches and brakes, principally for agricultural equipment and construction, and is expected to be accretive to Altra’s earnings in 2017. The deal is expected to close in Q1 of 2017.

“The acquisition of Stromag will provide Altra with complementary products, greater presence in key geographic regions and penetration into new growth end markets,” said Altra Chief Executive Officer Carl Christenson.

Shares for Altra have gone unchanged since the market’s close on Thursday.

By Bryan Smith