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

Online Embroidery & Clothing Printers
Leicestershire, UK Wide

Fantastic growing embroidery and clothing printers company. This is a relocatable business opportunity. Extensive list of fixtures and fittings. Offers invited.

Asking Price: £249,000
Turnover: £559,810


Play Centre with Restaurant
Manchester, UK Wide

Upmarket restaurant and play centre based in Manchester. Affluent trading area. Beautifully presented throughout. Management team in place. Newly equipped in 2018. Offers invited.

Asking Price: £699,950
Turnover: £624,000

Manchester, UK Wide

Popular restaurant located in Media City, Manchester. Located close to BBC offices. Good public transport links. Offers invited.

Asking Price: £275,000
Turnover: £416,000

View more businesses for sale

News Search

Latest News


Farsound Aviation sold to AGIC for £115 million | BUSINESS SALE

A supply chain management company operating in the aviation ...


Specialist engineering firm forced to appoint administrators | ADMINISTRATION

Rail contracting company Aspin Group Limited has been forced...


Irish mobile diagnostics firm snapped up by Blancco Technology Group | BUSINESS SALE

Blancco Technology Group, which provides a range of mobile d...

Free guide: 10 Biggest Buyer Mistakes

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


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