Tognum Sells Its Rotorion Propeller Shaft Unit To IFA
Tognum AG and the IFA Group, Haldensleben, signed contracts for the combination of their propeller shaft operations. The German Cartel Office has granted approval for this transaction. IFA Maschinenbau Verwaltungsgesellschaft GmbH will serve as a holding company and combine the current propeller shaft operations of IFA with those of Rotorion at its locations in Friedrichshafen and Charleston, South Carolina, U.S.A.
IFA intends to relocate its propeller shaft operations gradually from Friedrichshafen location to Haldensleben commencing at the end of 2009. Rotorion employees will be given the opportunity to move to the Haldensleben location or to remain with the Tognum Group. The current Rotorion production facilities in South Carolina will be retained as the US location of the new propeller shaft group.
Tognum will take a 25% shareholding in the IFA holding company for a period of five years, after which it will withdraw completely in its involvement in the company. Further details regarding the transaction and its financial impact on Tognum will be announced after the closing. No significant impact on revenues, adjusted EBIT or free cash flow is expected for the 2009 financial year.
For more information: www.tognum.com