One Equity Partners to Acquire Walterscheid Powertrain Group

Carve-out of Historic Off-Highway Powertrain

Market Leader

NEW YORK – MARCH 6, 2019 – One Equity Partners (“OEP“), a leading middle market private equity firm, today announced that it has signed a definitive agreement to acquire Walterscheid Powertrain Group, (“Walterscheid” or “the Company”), a leading provider of original equipment and aftermarket parts and services for off-highway powertrain applications, from GKN Limited.

Founded in 1919 and headquartered in Lohmar, Germany, Walterscheid manufactures, distributes and services shafts, gearboxes, attachment systems, clutches and other parts for off-highway applications. The Company’s 2,100 employees also provide a wide range of services for agricultural, construction, mining, and industrial OEM and aftermarket customers in Europe, China, and North America.

OEP will partner with the management team of Walterscheid, led by CEO Wolfgang Lemser, to establish the Company as an independent business, ensure continuity for customers, suppliers and employees, and to invest in the Company’s continued growth. Walterscheid expects no changes to daily operations as a result of the transaction.

“We’re excited to partner with Wolfgang and his team on this next phase of the Company’s development. Walterscheid is known for its leading engineering technology, product quality, and customer service. We look forward to working with the Company to reinforce that reputation,” said Joseph Huffsmith, Managing Director, OEP. “Walterscheid will be well positioned to grow through further investment, and to support the increasing demand of its world-class customers in the agricultural, construction, mining and industrial industries.”

Walterscheid has nine manufacturing plants and operates 26 aftermarket service locations globally, with a network of 130 distribution partners worldwide.

“OEP has a strong track record of building market-leading industrial companies through organic and inorganic investment initiatives that drive operational performance, add product capabilities and expand geographic reach,” said Lemser. “We are pleased to be partnering with OEP as we continue to develop and grow the Company.”

The transaction is expected to close in the second quarter of 2019, pending customary closing conditions and regulatory approval.

About Walterscheid Powertrain Group

The Walterscheid Powertrain Group is a global provider of connected and smart powertrain solutions and complete in-service support for the world’s leading off-highway and industrial equipment manufacturers. The firm continuously develops new technologies and customer solutions which deliver efficiency in the agriculture, construction, mining, utility vehicle and industrial markets and offers through life services for all powertrain products and systems between power source and power applied. With its global platform across 4 continents the Walterscheid Powertrain Group is the technology partner and innovation leader to the global leading OEMs. This together with a comprehensive aftermarket and service offering positions the group for above market long term growth.

About One Equity Partners

OEP is a middle-market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm builds market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 180 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, and Frankfurt. For more information, please visit www.oneequity.com.

Press contact for One Equity Partners:
Kelly Holman
Stanton
646-502-3509
KHolman@StantonPRM.com