GAM Enterprises Buys Schaeffler's Precision Gearbox Technology to Make Its Own Parts
The Illinois motion-control company acquired the intellectual property behind the PSC gear reducer, a core part in its own flagship product, and set up a new German subsidiary to manufacture it.
Key points
- GAM Enterprises acquired intellectual property and production assets for the PSC gear reducer from Schaeffler Ultra Precision Drives in a deal announced this week.
- GAM formed a new subsidiary, GAM-Melior GmbH, based in Hameln, Germany, to manufacture and develop the PSC product line.
- Financial terms were not disclosed by either company.
- The PSC gear reducer is the core gearing component inside GAM's flagship GPL product, used in robotics and automation equipment.
- Hartmut Hoffmann joined GAM-Melior GmbH as Managing Director.
GAM Enterprises, a Mount Prospect, Illinois manufacturer of high-precision gear reducers and motion-control parts, has bought key technology from a Schaeffler subsidiary, gaining control over a component it had depended on for years.
The company acquired intellectual property and production assets for the PSC gear reducer, a compact precision gearbox used in robots and automated machines, from Schaeffler Ultra Precision Drives (SUPD). It then created GAM-Melior GmbH, based in Hameln, Germany, to build and further develop the product.
Why does this deal matter?
GAM was already using this technology in its own products. Now it owns it outright.
The PSC reducer is the central gearing component inside GAM's GPL product line. Buying the intellectual property from the supplier that made it gives GAM what manufacturers call vertical integration: producing a part in-house rather than buying it from outside. That cuts dependence on a single supplier and gives GAM tighter control over quality and availability.
CEO Craig Van den Avont said the acquired patented technology "outperforms all other servo gearboxes on the market." Servo gearboxes translate a motor's spinning motion into precise, controlled movement, which is what robots and automated factory equipment need to move accurately. Whether it truly outperforms every rival is a claim worth watching as GAM-Melior begins independent production.
What is Schaeffler's connection?
Schaeffler, a large German industrial group, acquired SUPD in 2022 when it was still called Melior Motion GmbH, aiming to grow in the industrial automation market. The terms of the sale to GAM were not disclosed.
What happens next?
GAM says it'll continue supporting existing PSC customers, so those businesses shouldn't see a supply disruption. Hartmut Hoffmann, who joined as Managing Director, will oversee day-to-day operations and continued development of the PSC line.
Founded in 1990, GAM sells precision components to customers in aerospace, medical devices, semiconductor manufacturing and industrial automation. The company says the acquisition fits a broader push into high-precision robotics markets. AI2Day first covered GAM Enterprises on 5 August 2026, in the context of shifting supply-chain pressures that are making domestic component ownership more attractive across the sector.
Common questions
What is a gear reducer and why does it matter in robotics?
A gear reducer slows a motor's rotation while increasing its turning force, letting a robot move with precise, controlled power. Even small inaccuracies in the gearbox can throw off an entire movement, so precision here isn't optional.
Does this deal affect customers who currently buy PSC products?
GAM has stated it intends to keep supporting existing PSC customers. The product line moves to GAM-Melior GmbH, but GAM's stated goal is continuity. Customers with concerns should contact GAM directly to confirm their specific supply arrangements.
