September 5, 2011

Equita sells Stromag AG to GKN

Stromag Holding GmbH (“Stromag”), a privately held company whose principal shareholders include Equita GmbH & Co. Holding KGaA (“EQUITA”) and Stromag management, has been acquired as of 5th September 2011 by GKN plc (“GKN”) (LSE: GKN) at a transaction value of approximately €200 million (£174m, US$281m). The acquisition cost comprise a cash consideration of €164m (£146m, US$231m) for the equity and repayment of debt of €31m (£28m, US$44m), as well as the assumption of certain liabilities.

Stromag, which will be integrated into GKN Land Systems division, is a market leading supplier of engineered industrial power management components. Stromag has a particular focus on providing tailored solutions for its customers based on its strong technologies. Its core products include hydraulic clutches, electro-magnetic brakes and flexible couplings. Stromag is serving end-markets including agricultural equipment, construction and mining machinery, renewable energy and the metal processing industry. Stromag’s brand is internationally recognised and valued. The business is headquartered in Unna, Germany, and has manufacturing operations in Germany, France, USA, Brazil, India and China which are complemented by an international sales presence. Stromag’s 2010 revenues were €111m (£99m, US$156m). The company has approx. 850 employees.

GKN is a global engineering group operating in four business sectors: Automotive, Powder Metallurgy, Land Systems and Aerospace. With more than 130 sites in over 30 countries GKN has a global presence and has market leading positions in a number of product areas.

For GKN the acquisition of Stromag represents an important step in the implementation of GKN Land Systems’ strategy to build a global leader in Industrial Power Management, extending its capability in electro mechanical components. In combination with GKN’s existing business, Stromag will provide a strong platform to accelerate growth in existing markets and access to a number of attractive new industrial segments including renewable energy.

EQUITA is an independent investment holding company headquartered in Bad Homburg, Germany, which invests in medium-sized enterprises in German-speaking countries. EQUITA, a company which developed out of the entrepreneurial tradition of the Harald Quandt family, generally takes a majority stake in companies offering significant potential for growth and value creation. EQUITA has no limitation on its investment period, enabling it to invest in companies for the long term. Since its founding in 1992, EQUITA acquired 28 companies; currently EQUITA’s portfolio comprises ten companies besides Stromag. Please refer to the website www.equita.de for more details.

For further information:

Equita Management GmbH

Dr. Michael Hönig
Telefon: +49-6172 9441-0
michael.hoenig@equita.de

Dr. Hansjörg Schnabel
Telefon: +49-6172 9441-0
hansjoerg.schnabel@equita.de