Milwaukee-based Rexnord Corp. has agreed to acquire Haan, Germany-based Centa Power Transmission.
The terms of the transaction have not yet been disclosed. The deal is expected to close by the end of February, pending closing conditions.
Centa (Centa Antriebe Kirschey GmbH) manufactures flexible couplings and drive shafts that are used in the industrial, marine, rail and power generation sectors. It specializes in complex drive train and torsional vibration solutions. The company has about 450 employees worldwide, with subsidiaries in 10 countries. The main U.S. office is in Aurora, Illinois.
“Centa is a business that we have long thought would be an outstanding fit with Rexnord and we are very excited to come to an agreement to make that a reality,” said Todd Adams, president and chief executive officer of Rexnord. “We expect to drive considerable revenue and cost synergies as the business is integrated into Rexnord and believe the complementary product portfolio opens up multiple growth opportunities for us.”
Rexnord manufactures process and motion control products, namely highly engineered mechanical components used in complex systems; and water management products used to enhance water quality, safety, flow control and conservation. It has about 8,000 employees across the world. Rexnord reported $74.1 million in net income and $1.9 billion in revenue in fiscal 2017, and completed a $30 million restructuring in November.
“With the mission-critical nature of the applications in which most of Centa’s products are used, we believe there is a substantial opportunity to bring our DiRXN digital productivity platform and connected products capabilities to create even more value for Centa’s long-standing and impressive customer relationships,” said Kevin Zaba, group executive and president of the Rexnord Process & Motion Control platform.
Acquisitions contributed 3 percent to sales growth for Rexnord in fiscal 2017. In October, Rexnord acquired Berkeley, Illinois-based World Dryer Corp. for $50 million. The company also has chosen Illinois as the location for its new aerospace business headquarters, which is to be in Downers Grove.