Milwaukee-based power transmission equipment manufacturer
Twin Disc announced plans Wednesday to acquire
Katsa Oy, a maker of power transmission components and gearboxes based in Finland.
Twin Disc will pay €21 million, around $23 million, in an all-cash transaction expected to close in the first half of this year.
Katsa serves the marine, energy, mobile working machine and transmission and vehicle propulsion markets. The company had revenue of €33 million in fiscal 2023. Around 56% of those sales came from gearboxes, another 31% came from components and another 13% from services.
The company, founded in 1955, has around 175 employees at facilities in Tampere and Ikaalinen, Finland.
“Katsa Oy is a well-established business with a solid reputation for quality in addition to its strong in-house manufacturing and engineering capabilities. This acquisition is an excellent opportunity to expand Twin Disc’s global presence, leveraging Katsa’s longstanding relationships with leading European OEMs to introduce our portfolio into new, growing markets,” said
John Batten, president and chief executive officer of Twin Disc.
Twin Disc expects the deal to be accretive to its earnings within 24 months.
“We are excited to join another well-known company like Twin Disc which can provide synergies and new products to create new growth opportunities for Katsa. I look forward to continuing to lead the Katsa operation after the completion of the transaction and expanding our partnership with our loyal customers to position the business for long-term success under the Twin Disc brand,” said
Tomi Koskinen, CEO of Katsa Oy.
