Twin Disc, Inc. (NASDAQ:TWIN) shares leaped Friday, on the announcement it had completed the previously announced acquisition of Katsa Oy, a leading European manufacturer of high-quality power transmission components and gearboxes, in an all-cash transaction valued at €21 million (approximately $23 million).
The acquisition of Katsa broadens Twin Disc’s global reach through further expansion into growing European markets, while also adding complementary products to grow offerings in the industrial, marine and hybrid/electrification space.
For the fiscal year ended September 30, 2023, Katsa delivered approximately €33 million of revenue. Once fully integrated, the acquisition is expected to be accretive to Twin Disc’s U.S. GAAP earnings within 24 months.
Twin Disc, Inc. designs, manufactures and sells marine and heavy-duty off-highway power transmission equipment. Products offered include marine transmissions, azimuth drives, surface drives, propellers and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches and control systems.
The Company sells its products to customers primarily in the pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government and industrial markets.
For its part, Katsa designs and manufactures gearboxes and power transmission components which are tailored to meet the customer’s demands.
TWIN shares gathered 35 cents, or 2.5%, to $14.47.
