Concentric completes acquisition of GKN Sinter Metals de Argentina SA

Concentric AB (“Concentric”) today announces the completion of the acquisition
of GKN Sinter Metals de Argentina SA (“GKN Pumps”), a supplier of engine pumps
in South America, strengthening  Concentric’s presence in the region. GKN Pumps
has a production facility in Chivilcoy, Argentina that will provide Concentric
with an important foothold in the Mercosur trade union, thereby enabling further
penetration of the South American market. GKN Pumps was previously part of GKN
Powder Metallurgy, a division of GKN plc (listed on UK LSE) and one of the
world’s largest manufacturers of metal powder and sintered components.
The acquisition gives Concentric direct access to the commercial vehicle market
in South America and will enable Concentric to build even closer relationships
with its existing global customers. There are also operational synergies as
Concentric will be able to in-source a share of its global purchases of sintered
components. GKN Pumps will initially continue to focus on the manufacture of
engine products but, in the long-term, Concentric would also like to introduce
the manufacture of hydraulic products to this facility. For the year ended 31st
December 2014, GKN Pumps made sales of approximately 100 MSEK with 166
employees.

David Woolley, CEO of Concentric, comments:

“We have put a lot of effort into identifying acquisition targets that have
processes, manufacturing capabilities and products which match Concentric’s
quality standards and that also have a strong management team in place. GKN
Pumps meets all these criteria and will improve Concentric’s ability to sell
locally to our existing global customers. We plan to strengthen the local
engineering capabilities in line with the group’s global strategy to source,
manufacture and provide applications support locally to our customers. I am also
confident that, in the long-term, GKN Pumps will deliver margins in line with
the rest of the group.”

The transaction was completed on 30 January, 2015 and has gained all the
necessary approvals. The current managing director of GKN Pumps will remain with
the company and help integrate the business over the coming year. GKN Pumps will
be consolidated in Concentric’s financial statements as of 1 February, 2015. The
parties have agreed not to disclose the purchase price.

For further information, please contact David Bessant, CFO, tel  +44 121 445
6545.