SKÅNES FAGERHULT, Sweden, Jan. 2, 2021 /PRNewswire/ -- Concentric AB ("Concentric") has acquired Allied Enterprises, LLC. ("Allied Enterprises"), a US manufacturer of transmission products for the construction, agricultural, material handling and stationary power markets. Allied Enterprises has a production facility in Muncie, Indiana, USA 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. The business was acquired for MSEK 95.4 (MUSD 11.7) on a cash and debt free basis and the entire consideration was paid in cash.
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 these existing product categories in terms of pressure, providing the opportunity to gain an increased market share of the global transmission market.
This additional product breadth enhances the value Concentric 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.
For the year ended 31st December 2019, Allied Enterprises made sales of MSEK 58.8 (MUSD 7.2). The business has 40 employees.
David Woolley, CEO of Concentric, comments: "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. 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 31 December, 2020. 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 3 quarters of 2021. John Miller commented "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". Allied Enterprises will be consolidated in Concentric's financial statements as of 31 December, 2020.
This information is of the type that Concentric AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 0.00 CET on 1 January, 2021.
For additional information please contact David Woolley, telephone +44-121-445 6545
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SOURCE Concentric AB