GKN confirms plans for sale of Powder Metallurgy business

News
February 14, 2018

February 14, 2018

GKN confirms plans for sale of Powder Metallurgy business

Anne Stevens, GKN Chief Executive (left) and Jos Sclater, GKN Finance Director (right) (courtesy GKN plc)

 

GKN plc has confirmed that it will look to divest GKN Powder Metallurgy, comprising GKN Sinter Metals and Hoeganaes, within the next 12-18 months as part of its new business strategy to transform the company, including the sale of non-core segments. The new strategy announcement comes in response to Melrose PLC’s widely-reported takeover bid in January 2018. After an initial proposal from Melrose to acquire GKN was rejected by GKN’s Board, both companies have launched campaigns to convince GKN shareholders of their respective plans for the group.

GKN stated that there are three components to its new strategy: the company plans to deliver distinct strategies for different product segments through rigorous capital allocation and focused performance targets; establish a delivery culture based on greater accountability, capability and pace, supported by aligned incentives; and separate operationally now and formally when it maximises shareholder value – with the operational separation of GKN Aerospace and Driveline already underway.

As part of a plan to divest non-core segments, GKN group will also look to sell GKN Driveline’s Wheels, Cylinder Liners and Off-Highway Powertrain businesses, while identifying plans to grow Driveline China and further develop its eDrive Systems business. GKN Aero Additive Manufacturing was also identified as a product segment positioned for growth.

The Board stated that it is targeting up to £2.5 billion cash return to shareholders over the next three years, with a significant portion of this expected to come from divestments executed in the first 12-18 months, including the sale of Powder Metallurgy. The group will also enact a ‘progressive dividend policy’ targeting an average pay-out of 50% of free cash flow to its shareholders over the period of 2018-2020.

Anne Stevens, Chief Executive of GKN, stated, “The new strategy brings clarity, accountability and focus to GKN’s world-class businesses and will allow the group to attain world-class financial performance. GKN has great technologies and great people. We have strong market positions and have delivered good growth, with management revenues last year of over £10 billion.”

“But too often we pursued growth at the expense of returns,” she continued. “This will no longer be the case. The new strategy brings discipline, both financial and operational.” Stevens went on to state that the company expects the new strategy to generate significant cash for shareholders in the short term, and meaningful sustainable cash flows over the mid- to long-term. “We expect to deliver £340 million of recurring annual cash benefit from the end of 2020,” she stated.

www.gkn.com

 

 

Read Metal AM magazine‘s article on ‘GKN Aerospace: The development of Additive Manufacturing at a global Tier 1 aerospace supplier’ (Metal AM Winter 2016, Vol. 2, No. 4). 

 

Metal AM magazine visited the GKN Aerospace facility at Filton, Bristol, UK, to discover the business’s global development activities in Additive Manufacturing (AM) and to view the company’s on-site AM centre. The article offers an outline of the company’s  activities and future aspirations in the field of AM for aerospace applications. 

 

Download the full issue here.

News
February 14, 2018

In the latest issue of Metal AM magazine

Download PDF
 

Extensive AM industry news coverage, as well as the following exclusive deep-dive articles:

  • The GRCop story: The development, production and Additive Manufacturing of NASA’s rocket engine alloys
  • Formnext 2023: Innovations in metal Additive Manufacturing from the industry’s leading international exhibition
  • Cybersecurity in Additive Manufacturing: Securing the industry’s future
  • Additive Manufacturing in the jewellery industry: exploring the potential of platinum and titanium
  • Mission possible: The five-year plan to gain FAA and EASA acceptance of in-process monitoring

The world of metal AM to your inbox

Don't miss any new issue of Metal AM magazine, and get the latest industry news. Sign up to our twice weekly newsletter.

Sign up

Discover our magazine archive…

The free to access Metal Additive Manufacturing magazine archive offers unparalleled insight into the world of metal Additive Manufacturing from a commercial and technological perspective through:

  • Reports on visits to leading metal AM part manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.

Browse the archive

Looking for AM machines, metal powders or part manufacturing services?

Discover suppliers of these and more in our comprehensive advertisers’ index and buyer’s guide, available in the back of Metal AM magazine.

  • AM machines
  • Process monitoring & calibration
  • Heat treatment & sintering
  • HIP systems & services
  • Pre- & post-processing technology
  • Powders, powder production and analysis
  • Part manufacturers
  • Consulting, training & market data
View online
Share via
Copy link
Powered by Social Snap