The UK engineering giant GKN today said it will to acquire the all-wheel-drive components businesses of Getrag KG, a privately held German company controlled by the Hagenmeyer family.
As part of the transaction, GKN is also acquiring an exclusive licence, principally for Europe and the Americas, to Getrag's electric drivetrain technology for use in electric and certain hybrid vehicles.
GKN said it is buying Getrag Corporation, a joint venture with Dana Corp. based in the U.S., and Getrag All Wheel Drive AB, a joint venture with Dana Holding Corporation and Volvo Cars based in Sweden.
The ventures are together known as Getrag Driveline Products and their core business is the Tier 1 supply of geared driveline products, including power transfer units and rear-drive units for awd vehicles, as well as final drive units for high performance, rear-wheel drive vehicles.
The business is also developing the future supply of transmission and axle products for hybrid and electric vehicle drivetrains.
GKN said Getrag Driveline Products will be integrated into the GKN Driveline division.
"This acquisition is a significant step forward for Driveline, accelerating our strategy for growth in awd systems and hybrid/electric drivetrains," said GKN Driveline CEO Nigel Stein in a statement.
He added: "Production of awd vehicles is forecast to grow at above market rates, reflecting increasing demand globally for crossover vehicles and compact SUVs."