U.S. primarily based energy transmission gear producer Twin Disc introduced it has entered right into a definitive settlement to amass Katsa, a Finnish-headquartered producer of energy transmission parts and gearboxes for industrial and marine markets, in an all-cash transaction valued at €21 million (roughly $23 million).
The transaction is predicted to shut within the first half of calendar 12 months 2024, topic to customary closing circumstances, together with regulatory approval, Twin Disc stated in an announcement.
Twin Disc stated the acquisition will broaden its world attain by additional enlargement into rising European markets, whereas additionally including complementary merchandise to develop choices within the industrial, marine and hybrid/electrification area. For the fiscal 12 months ended September 30, 2023, Katsa delivered roughly €33 million of income.
“Katsa Oy is a well-established business with a solid reputation for quality in addition to its strong in-house manufacturing and engineering capabilities. This acquisition is an excellent opportunity to expand Twin Disc’s global presence, leveraging Katsa’s longstanding relationships with leading European OEMs to introduce our portfolio into new, growing markets,” stated John H. Batten, president and CEO of Twin Disc. “We look forward to welcoming the Katsa team to Twin Disc and are confident in our ability to work together to drive sustained growth while solidifying our position as a leading provider of hybrid and electrification solutions.”
Tomi Koskinen, CEO of Katsa, stated, “We are excited to join another well-known company like Twin Disc which can provide synergies and new products to create new growth opportunities for Katsa. I look forward to continuing to lead the Katsa operation after the completion of the transaction and expanding our partnership with our loyal customers to position the business for long-term success under the Twin Disc brand.”
