Gefran starts the week in great shape in Piazza Affari, where it shows an increase of more than 12 percent. The title was driven by the news of the signing of a framework agreement for the sale of the Drive Business to the Brazilian group Weg for a total value of 23 million euros. Gefran’s Drives Business operates in the design, production and sale of products and solutions to regulate speed and control DC and AC motors, inverters, armature converters and servo drives for industrial applications as well as solutions used in elevator control; in 2021 it achieved revenues of € 44.8 million (equal to 27% of the group’s turnover) and has 175 employees.
The perimeter of the transaction consists of the subsidiaries Gefran Drives and Motion, based in Gerenzano, Siei Areg Gmbh, based in Pleidelsheim (Germany), and the business units relating to the Drives Business of the subsidiaries Gefran Siei Drives Technology Co Ltd, based in Shanghai (China) and Gefran India Private in Pune in India. Pursuant to the framework agreement, the execution of the sale may be completed in several phases: the first phase will consist in the sale to WEG of the shares in Gefran Drives and Motion and Siei Areg Gmbh. Subsequently, the company branches of the Drives Business spun off from Gefran Siei Drives Technology and Gefran India Private will be sold. The completion of the transaction is subject to the fulfillment of some usual conditions precedent for transactions of this type, including the approval by the regulatory authorities and the completion of the operations for the spin-off of the business units.
The timing of the transaction, the press release reads, is linked to the fulfillment of the conditions precedent: the first phase is expected by the end of 2022 and the deadline set by the framework agreement is 30 June 2023, possibly extendable until 31 December 2023 in the event that the obligations related to the sale of the company branches require this extension. The final consideration, which will be paid in cash, will be determined through the calculation mechanisms usually used in these transactions.