GKN has announced the acquisition of a 33.3 percent stake in Tochigi Fuji Sangyo (TFS), a leading Japanese supplier of advanced automotive driveline components, from Nissan and other major shareholders for approximately $39.2 million (JPY 5.1 billion / 27.5 million pounds in cash, or approximately 420 Yen per share).
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GKN has also obtained the right to acquire further shares at 415 Yen per share to bring its total potential holding in TFS to 50.4 percent.
GKN said that the transaction ‘marks a further step forward for GKN’s growing presence in Japan and will make a significant contribution to the development of its driveline product and technology base’.
TFS focuses on specialist driveline components — such as torque management devices for domestic Japanese vehicle manufacturers. TFS and GKN’s Automotive Driveline Division have been partners for 16 years in a viscous coupling joint venture in Japan. As a result of this investment, GKN’s Automotive Driveline Division and TFS intend to co-operate more closely on the development, engineering and sale of torque management devices and driveline related geared components to automotive original equipment manufacturers on a global basis.
Ian Griffiths, GKN managing director of Automotive Driveline, said: “GKN is the world leader in constant velocity jointed half shafts. This acquisition is in line with our strategy to expand into related areas of the driveline system.
“The acquisition of a stake in TFS builds on the strong business and personal relationships which both companies have developed over a number of years. TFS manufactures complementary products and has extensive relationships with customers in Japan. We expect major strategic benefits from this new, closer relationship.
“Together, GKN and TFS will be the world’s largest independent suppliers of torque management devices.”
