GKN Buys Rockford Powertrain
Posted on August 9, 2006
GKN plc of the UK has announced the acquisition of Rockford Powertrain, Rockford, Ill., a producer of high speed driveshafts for the construction and mining equipment sector. GKN is acquiring the Rockford for what it calls “a consideration of $50 million which is being met from existing resources.” Rockford has current annual revenues of $60 million.
GKN said Rockford’s high speed driveshafts are complementary to its current, low speed products which are aimed primarily at the agricultural equipment sector. Rockford employs 185 people in the US and in recent years has outsourced an increasing proportion of its manufacturing to low labor cost countries, principally China, while retaining a US engineering and technical presence.
Martyn Vaughan, Chief Executive of GKN OffHighway, said: “This acquisition fits closely with our strategic criteria for OffHighway. It improves our penetration of both the US and construction sectors – 95% of Rockford’s sales are in the US with more than 85% going to construction and mining equipment manufacturers.
Rockford’s driveshafts operate at up to 6000 rpm and can handle power outputs from 150 to 2500 hp.