Concentric AB acquires U.S. transmission pump specialist
By Mike Brezonick04 January 2021
Concentric AB announced it has acquired Allied Enterprises, LLC, a U.S. manufacturer of transmission products for the construction, agricultural, material handling and stationary power markets. The business was acquired for $11.7 million on a cash and debt free basis and the entire consideration was paid in cash, Concentric said.
Allied Enterprises has 40 employees and a production facility in Muncie, Ind., and has been manufacturing transmission products for over 30 years. Allied Enterprises has long established trading relationships with a number of leading OEMs and remanufacturing suppliers around the world, according to Concentric. In 2019, Allied Enterprises reported sales of $7.2 million.
The acquisition delivers Concentric a strengthened transmission pump capability which complements its product offering. Concentric has an existing range of lower pressure engine pumps as well as a range of higher-pressure hydraulic pumps. The transmission products produced by Allied Enterprises sit between Concentric’s existing product categories in terms of pressure, providing the opportunity to gain an increased market share of the global transmission market.
Concentric said the additional product breadth enhances the value it can offer to its existing global customers and to Allied Enterprises customers and creates significant cross-selling opportunities. There are also operational synergies as Concentric and Allied Enterprises use a number of common components and processes in the production of their technologies.
“Concentric have regularly communicated our intent to improve and expand our technological capability via acquisition and with this goal in mind, Allied Enterprises represents a key strategic step for Concentric,” said David Woolley, Concentric CEO. “We have had a professional relationship with Allied Enterprises for a number of years and have been impressed by their technical expertise in transmission pumps.
“Importantly, this range of pumps can also be adapted to be driven electronically, and therefore accelerate our growth in the strategically important CO2 neutral Battery Electric Vehicle (BEV) and Hydrogen Fuel Cell (HFC) vehicle and machine markets.”
The transaction was completed on Dec. 31. The previous owner and CEO, John Miller, will remain with the company in an advisory capacity to help with the transition process over the first three quarters of 2021. “We are excited to become part of Concentric AB and believe that this acquisition will give our product greater global reach and opportunities to grow further,” said Miller.