£8m bus flywheel merger
Global engineering group, GKN Plc, has acquired the entire issued share capital of Williams Hybrid Power Ltd (WHP) from Williams Grand Prix Engineering Ltd. WHP specialises in the design and manufacture of composite flywheel based energy storage systems, initially exploring options for the bus, truck and tram markets. GKN is to use its global resources and manufacturing capability to maximise the commercial opportunities that exist with this technology. WHP was acquired for a cash consideration of £8m, together with potential uncapped additional consideration payable based upon future sales of WHP products in the following ten years. That additional consideration will be calculated at 3.5% of sales in each of the first five years, declining on a stepped basis to 1.5% by the end of the ten year period and shall only be payable to the extent that it cumulatively exceeds £4m. For the financial year ended 31 December 2013, WHP made a loss after taxation of £1m and had gross assets of £3.2m.
Chief Executive of GKN Land Systems, Phil Swash, said, ‘This acquisition is a great opportunity for GKN to take a unique technology to global markets, helping solve the emissions and efficiency challenges faced by mass transit companies around the world. It also provides GKN with a unique set of engineering skills that we believe will help bring new innovation and performance to our wider product portfolio.’