TWIN - Twin Disc Inc. Signs Definitive Agreement to Acquire Katsa Oy | Benzinga
MILWAUKEE, March 06, 2024 (GLOBE NEWSWIRE) -- Twin Disc, Inc. (NASDAQ:TWIN), announced today that it has entered into a definitive agreement to acquire Katsa Oy ("Katsa"), a leading European manufacturer of high-quality power transmission components and gearboxes, in an all-cash transaction valued at €21 million (approximately $23 million). The transaction is expected to close in the first half of calendar year 2024, subject to customary closing conditions, including regulatory approval.
Founded in 1955 and headquartered in Tampere, Finland, Katsa designs and manufactures custom-designed gearboxes and power transmission components which meet high-quality requirements for industrial and marine end-markets for a broad range of end market applications. Katsa also provides a wide range of after-sales services, including spare part deliveries, reverse engineering, gearbox, refurbishment, and modernizations.
The acquisition of Katsa Oy will broaden Twin Disc's global reach through further expansion into growing European markets, while also adding complementary products to grow offerings in the industrial, marine and hybrid/electrification space.
Strategic Fit of Katsa with Twin Disc:
- Enables expansion into new European markets while generating ample cross-selling opportunities through existing customer base
- Twin Disc's global sales and service network will allow for growth in Katsa sales outside their current markets
- Diversifies and enhances offerings within Twin Disc's Industrial product line, also adding new content for hybrid and electrification applications
- Creates substantial commercial, manufacturing, and purchasing synergies, anticipated to be accretive to earnings per share within 24 months
"Katsa Oy is a well-established business with a solid reputation for quality in addition to its strong in-house manufacturing and engineering capabilities. This acquisition ...