IK Investment Partners is to sell Axtone Group, a manufacturer of components for railway industry, to ITT, a US manufacturer of components and technology solutions for the energy, transportation and industrial markets.
Financial terms of the transaction have not been disclosed.
Axtone is a European manufacturer of buffers, draw-gear devices, railway springs as well as other shock absorption and safety components for rail and metro vehicles and rail infrastructure. With over 200 product certificates and customers across the globe, the company’s solutions fulfil the requirements of European, UIC, Russian GOST and Chinese TB/T technical standards.
Axtone is headquartered in Kanczuga, Poland and manufactures its products across six locations in Poland, Germany, Czech Republic and Russia as well as in a joint-venture in China.
“Together with Axtone’s management, we have successfully transformed the Company from a European freight buffer manufacturer to a global provider of customised solutions for shock absorption to the rail industry. During IK’s ownership, we supported two add-on acquisitions within railway springs as well as fostered a restructuring of the company’s operations and footprint. Our investment in Axtone demonstrates IK’s ability to support CEE companies, particularly in terms of international expansion and the implementation of transformational agendas. We wish the company and its management team the very best in their next step of development,” says Detlef Dinsel, partner at IK and adviser to the IK 2004 Fund.
“The partnership with a new owner is a real acknowledgement of the achievements of Axtone, and we would like to thank IK for their support. Axtone is well-positioned to benefit from its unique technologies and brand recognition. We are pleased with the opportunity to join ITT’s legacy KONI brand, as we have a shared commitment to innovation, quality and unrivalled performance,” says Oliver Feicks, CEO of Axtone.
The transaction is expected to close in the first quarter of 2017, subject to customary closing conditions, including receipt of appropriate regulatory approvals.