GKN considers land systems division sale

Mon, 24 Aug 2015 | DIVISION SALE

A sale of GKN's land systems and heavy equipment division could be on the cards in the coming weeks, The Sunday Times has reported.

Engineering giant GKN is reportedly considering the sale in light of a prolonged decline in demand for its heavy equipment.

A broader informal review of the company and its different areas of operation brought the issue to light and the division is now being considered for disposal as a result.

City sources told the paper that a number of private equity firms have already been showing an interest in Land Systems for some time, however, a quick sale does not appear to be on the cards and a formal sales process has not been entered into.

GKN produces components for vehicles used in mining, construction and farming. If it doesn't pursue a sale of the land systems division it may also look into folding some of its operations into its driveline business to assist development of vehicle power mechanisms.

The division's half-year results in July revealed a decline in the land systems division revenues of 13 per cent. Revenue dropped to £371 million while trading profit more than halved to £15 million.

Despite this, the company's chief executive has expressed confidence that the division will return to growth, albeit not in 2015. Potential buyers may well be looking at the long game when considering the potential for an acquisition.


View other engineering businesses for sale.


Share this article



Latest Businesses for Sale

BMW After Market Specialist
UK Wide

A rare opportunity to acquire a long established, profitable, BMW After Market Specialist, with an excellent reputation. Trading profitably since 1994. Offering complete automotive performance, engineering and styling solutions. This is a retirement...

Asking Price: Offers Invited
Turnover: £726,000

Provider of Coffee Machines & Related Products
South East, UK

Provides an extensive range of coffee machinery, which is imported from Italy and Spain, and coffee products, which are sourced within the UK. Offers invited.

Asking Price: Offers Invited
Turnover: £1,000,060

FREEHOLD


International Export Services
North West, UK

One of the UK's leading end-to-end service providers. Comprehensive export handling, packing and storage services, providing specialist cargo and goods management to a wide variety of international operations and private clients. 40+ years of success...

Asking Price: Offers Invited
Turnover: £1,300,000


View more businesses for sale

News Search

Latest News

 
24
 
Jan
 

Yorkshire engineering firm completes MBO deal | MBO/MBI

A West Yorkshire engineering group has been taken over by th...

 
22
 
Jan
 

Jewellery retailer enters administration | ADMINISTRATION

A Nottingham-based jewellery and watches company has fallen ...

 
19
 
Jan
 

Luxury lodging group enters administration | ADMINISTRATION

An Essex-based company which operates eight luxury lodge par...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources