30th Apr 2014 11:49
LONDON (Alliance News) - Engineering company GKN PLC Wednesday said it had agreed to sell its half of emissions reduction technology business Emitec Gesellschaft für Emissionstechnologie mbH to joint venture partner Continental AG for EUR46 million in cash.
In a statement, the British company said it would use the proceeds of the sale to reduce debt.
Emitec was established as a 50:50 joint venture in 1986. It is a specialist manufacturer of metallic catalytic converter substrates and more recently of selective catalytic reduction dosing systems. Germany's Continental will own the whole business after the deal if completed.
"Emitec has been a great investment for GKN. It is a good business that will now benefit from full
technology connection with Continental's emissions control systems," GKN Chief Executive Nigel Stein said in a statement.
GKN shares were up 0.5% at 383.7 pence Thursday afternoon.
By Steve McGrath; [email protected]; @SteveMcGrath1
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