Torotrak renegotiates JV agreement
TOROTRAK, the Lancashire vehicle transmission specialist, has secured a £1m royalty payment from a US-based group after renegotiating the terms of a joint venture arrangement.
The Leyland-based company said it had received the cash from MTD Holdings with which it launched the Infinitrak business to supply transmission systems for outdoor equipment such as lawnmowers.
“As stated in the half-year results, we believe that these new arrangements play best to the respective strengths and strategic interests of both MTD and Torotrak. MTD will focus on its own branded products and manage future development of transmissions based on Torotrak’s technology tailored to its own needs and cost requirements.
“Torotrak will benefit from MTD’s success through the initial licence payments, already received, and future royalties.”
Torotrak, which is listed on the FTSE techMark All Share index, supplies two main customers – US-based Allison Transmission and an unnamed major European truck and bus manufacturer.
