Gefran S.p.A., following the resolution of the Board of Directors, has signed a framework agreement for the sale of the Drives Business to the Brazilian group WEG S.A. for a total value of 23 million euros.
The scope of the transaction consists of the subsidiaries Gefran Drives and Motion S.r.l., based in Gerenzano (Varese), Siei Areg Gmbh, based in Pleidelsheim (Germany), and the business units related to the Drive Business of the subsidiaries Gefran Siei Drives Technology Co Ltd., based in Shanghai (China) and Gefran India Private Ltd based in Pune (India).
Pursuant to the framework agreement, the execution of the sale may be completed in several stages: the first stage will consist in the sale to WEG of the shares in Gefran Drives and Motion S.r.l. and Siei Areg Gmbh. Subsequently, the business units of the Drives Business spun off from Gefran Siei Drives Technology Co Ltd and Gefran India Private Ltd will be sold.
According to the Managing Director of WEG Automation, Manfred Peter Johann, this acquisition will place WEG in a favorable position in a strategic market. “Our objective is to offer an increasingly broad portfolio of products and solutions, increase our presence in a market as important as the European market, now with local manufacturing, and thereby accelerate our growth process abroad within our motion drives strategy,” explains the executive.
The agreement is also the result of common values and common vision identities: Gefran and WEG are both family businesses that consider the stable creation of value over time a fundamental objective of the development strategy. For this reason, the transaction will take place in compliance with the principles of transparency and business continuity historically pursued by Gefran.
"The sale of the Drives Business is part of Gefran’s broader strategic plan to focus resources on the company's historical core business of Sensors and Components for Industrial Automation" -said Marcello Perini, CEO of the Gefran-Group. "In these business areas, the Group has a consolidated global leadership, generates excellent income results on a stable basis and has primarily directed the investment plan of recent years”. “The financial resources generated by the operation” continues Marcello Perini, “will accelerate the achievement of the growth objectives (organic and external) envisaged by the business plan”.
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