MILWAUKEE - Twin Disc , Inc. (NASDAQ: NASDAQ:TWIN), a global leader in power transmission technology, announced today its definitive agreement to purchase Finnish company Katsa Oy in a deal valued at €21 million (approximately $23 million). The transaction, pending regulatory approval and customary closing conditions, is slated to conclude in the first half of 2024.
Katsa Oy, established in 1955 and based in Tampere, Finland, specializes in manufacturing custom-designed gearboxes and power transmission components for industrial and marine applications. The acquisition is set to enhance Twin Disc's product offerings, particularly in the industrial, marine, and hybrid/electrification sectors, and is expected to be accretive to Twin Disc's earnings per share within 24 months.
The strategic move aims to extend Twin Disc's European market presence and capitalize on cross-selling opportunities through its existing customer base. Katsa's strong manufacturing and engineering capabilities, coupled with a reputation for quality, are anticipated to complement Twin Disc's global sales and service network, enabling further growth outside Katsa's current markets.
John H. Batten, President and CEO of Twin Disc, expressed confidence in the acquisition, stating that it represents an excellent opportunity to expand the company's global footprint and reinforce its position in hybrid and electrification solutions.
Tomi Koskinen, CEO of Katsa Oy, also conveyed enthusiasm about joining forces with Twin Disc, highlighting the potential for new growth opportunities under the Twin Disc brand.
For the fiscal year that ended on September 30, 2023, Katsa reported approximately €33 million in revenue. The acquisition is part of Twin Disc's ongoing efforts to diversify its offerings and enhance its industrial product line.
This news is based on a press release statement from Twin Disc, Incorporated. The company, with a history dating back to 1918, has a diverse range of products including marine transmissions, surface drives, and power take-offs, serving various markets from pleasure craft to government and industrial sectors.
Twin Disc sells its products globally through a direct sales force and distributor network. For further details about Twin Disc and its products, please visit their official website.
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