Member Company GKN Sells to Melrose

Member company GKN Shafts & Services, part of one of Britain’s oldest engineering firms, has been sold.

Melrose Industries, which specializes in turning around manufacturing businesses and selling them, won favor with 52 percent of GKN shareholders in spite of opposition from company leadership.

GKN employs 58,000 people worldwide. Its businesses cover aerospace and automotive engineering, and its driveline division makes systems for roughly half the world’s passenger cars and light trucks.

GKN had hoped to sell its driveline division, which includes Walterscheid off-highway power drives and linkage systems, as well as other operations considered non-core. It wanted to combine those drive system operations with Dana Inc., an American worldwide supplier of drivetrain, sealing, and thermal-management technologies.

“We are, of course, disappointed by today’s outcome and continue to believe Dana would be the best owner and operator of GKN Driveline,” said Dana President and CEO James Kamsickas after the vote. “This has always been an opportunity, not a required or critical asset.”

Sources: BBC and Farm Equipment

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