GKN : Disposal of Stromag business

21 October 2016

GKN plc agrees sale of its Stromag business for€198 million

GKN plc ('GKN') today announces that it has agreed the sale of its Stromag business (part of the GKN Land Systems division) to Altra Industrial Motion Corp. ('Altra') for a cash consideration of €184 million (£164 million) and the transfer of debt-like obligations of approximately €14 million (£13 million) for a total enterprise value of €198 million (£177 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 (£117 million).

Nigel Stein, Chief Executive of GKN, said:

'I would like to thank the Stromag team for their dedication over the past five years. Stromag has been a good investment for GKN despite challenging end markets and I am confident that Altra is an excellent home for the business. Altra is well positioned to invest in the business to meet the future growth opportunities in its markets. For GKN this sale helps sharpen our focus and allows us to redeploy capital into our core aerospace and automotive businesses.'

GKN will release its latest trading update on Tuesday 25 October.

ENDS

Notes

1. EUR/GBP exchange rate of 1.12.

For further information, on this release please contact:

Guy Stainer
Investor Relations Director, GKN plc
T: +44 (0)207 463 2382
M: +44 (0)7739 778187
E:guy.stainer@gkn.com

Chris FoxGroup Communications Director, GKN plc
T: +44 (0)1527 53 3238
M: +44 (0)7920 540051
E:chris.fox@gkn.com

Press releases can also be found on the websitewww.gkn.com

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Editor's notes:

GKNplcis a global engineering group. It has four divisions; GKN Aerospace, GKN Driveline, GKN Powder Metallurgy and GKN Land Systems, which operate in the aerospace, automotive and land systems markets. Over 56,000 people work in GKN companies and equity accounted investments in more than 30 countries. GKN is listed on the London Stock Exchange (LSE: GKN) and recorded sales of £7.7 billion in the year to 31 December 2015.

Altra Industrial Motion Corp., through its subsidiaries, is a leading global designer, producer and marketer of a wide range of electromechanical power transmission and motion control products. The company brings together strong brands covering over 40 product lines with production facilities in eleven countries. Altra's leading brands include Ameridrives Couplings, Bauer Gear Motor, Bibby Turboflex, Boston Gear, Delroyd Worm Gear, Formsprag Clutch, Guardian Couplings, Huco, Industrial Clutch, Inertia Dynamics, Kilian Manufacturing, Lamiflex Couplings, Marland Clutch, Matrix, Nuttall Gear, Stieber Clutch, Svendborg Brakes, TB Wood's, Twiflex, Warner Electric, Warner Linear, and Wichita Clutch.