Private investor,
Rcapital has signed an agreement to acquire UK-based
GT Emissions Systems, a subsidiary of
Knorr-Bremse, the global market and technology leader for braking systems and other rail and commercial vehicle systems. GT Emissions Systems is a leading supplier of emission control systems for diesel engines in on-highway commercial vehicles and off-highway equipment. The transaction is expected to close in the fourth quarter.
Founded in 1974, GT Emissions Systems is headquartered in Peterlee with assembly lines in Italy, India and Brazil. The business employs circa 225 people globally and its customers include Daimler, Volvo, Scania, JCB, MAN and John Deere.
GT has established itself as a leading manufacturer and supplier of engine air valve systems for medium and heavy duty commercial trucks and the off-highway equipment market. It specialises in ‘engine air’ components which include exhaust throttle valves, exhaust gas recirculation valves and intake throttle valves. GT’s solutions are a critical component of the internal combustion engine and are designed to help ensure OEMs are able to meet ever evolving emission standards.
Rcapital is uniquely placed to support the business, thanks to its strong track record in the engineering sector with its existing investments in Bromford Precision Solutions, Trac Precision Solutions, Nasmyth Group and, most recently, FGP Systems. This transaction also marks Rcapital’s eighth corporate carve-out transaction in recent years.
Sam Duberley, investment director at Rcapital, said: “GT is a great business, providing well-engineered complex components to an impressive blue chip client base. We are passionate about supporting great British engineering businesses and we firmly believe that under our stewardship, GT will grow from strength to strength.”
Steve Wright, GT Emissions Systems managing director, said: “GT Emissions Systems has great potential and an opportunity to build on its market-leading position, serving clients globally. I am looking forward to working with the Rcapital team and benefitting from its significant experience in the sector and track record of delivering strong returns and long-term growth.”