GKN plc, the global engineering group, today announces it has acquired the entire issued share capital of Williams Hybrid Power Limited (“WHP”) from Williams Grand Prix Engineering Limited.
WHP specialises in the design and manufacture of composite flywheel-based energy storage systems, initially exploring options for the bus, truck and tram markets. GKN and WHP have been working together to validate the use of this technology and now that this stage has been reached, it is appropriate for GKN to use its global resources and manufacturing capability to maximise the commercial opportunities that exist.
The consideration payable for the acquisition comprises cash consideration of £8.0m payable at closing, together with potential uncapped additional consideration payable based upon future sales of WHP products in the following 10 years. That additional consideration will be calculated at 3.5% of sales in each of the first five years, declining on a stepped basis to 1.5% by the end of the 10 year period, and shall only be payable to the extent that it cumulatively exceeds £4.0m. The acquisition will be funded from GKN’s existing resources.
Speaking about the acquisition, Phil Swash, Chief Executive of GKN Land Systems, said: “This acquisition is a great opportunity for GKN to take a unique technology to global markets, helping solve the emissions and efficiency challenges faced by mass transit companies around the world.
“It also provides GKN with a unique set of engineering skills that we believe will help bring new innovation and performance to our wider product portfolio.”
For the financial year ended 31 December 2013, WHP made a loss after taxation of £1.0 million and had gross assets of £3.2 million.
