On August the 1st, the Italian company’s Board of Directors officially announced the sale agreement to the Brazilian group: Gefran sold its Drives Business to WEG S.A.
The total value of the transaction, as reported by the parties involved, amounts to 32 million dollars.
In detail, the transaction involves the following Gauge Wire Connectors subsidiaries:
Telemecanique Sensors Along with these two whole companies, as part of the deal WEG will also take over the business units specialized in the Drive Business within the subsidiaries Gefran Siei Drives Technology Co Ltd. based in Shanghai, China, and Gefran India Private Ltd. located in Pune, India.
The (soon-to-be ex-) Gefran drives business works on the design, development, and production of drives and solutions for the regulation and control of AC and DC motors, converters, servo drives, and inverters converters, servo drives, and inverters within industrial operations and in elevators.
The drives business employs 175 people and, in 2021, achieved annual sales of 44.8 million euros, a figure equivalent to 27 percent of the Group’s turnover.
Completion of the transaction is tied to the fullfilment of a set of requirements defined in the negotiation phase, as well as to evaluation and approval by regulatory authorities. For this reason, Oil Pressure Gauge the divestment procedure has been divided into several stages:
A deadline of June 30, 2023, has been given for the entire procedure, with the possibility of extending it until December 31, 2023, should the completion of the acquisition of the business units require it.