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 of the deal 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 industrial automation equipment.
- Hartmut Hoffmann joined GAM-Melior GmbH as Managing Director to lead its operations.
GAM Enterprises, a manufacturer of high-precision gear reducers and motion-control parts based in Mount Prospect, Illinois, has bought key technology from a Schaeffler subsidiary, and in doing so, gained control over a critical component it has 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). GAM then created a new German subsidiary, GAM-Melior GmbH, to build and further develop the product. The new company will be headquartered in Hameln, Germany.
Why does this deal matter?
The short answer: GAM was already using this technology in its own products, and now it owns it outright.
The PSC gear reducer is the central gearing component inside GAM's GPL product line, its most prominent offering. Buying the intellectual property from the supplier that made that component gives GAM what manufacturers call vertical integration, meaning it can now produce a part in-house rather than buying it from an outside company. That reduces dependence on a single supplier and gives GAM more control over quality, cost and availability.
CEO Craig Van den Avont called the patented technology "revolutionary" and said it "outperforms all other servo gearboxes on the market." Servo gearboxes are the mechanical devices that translate a motor's spinning motion into precise, controlled movement, which is exactly what robots and automated factory equipment need to move accurately.
What is Schaeffler's connection?
Schaeffler, a large German industrial group, acquired SUPD in 2022 when it was still called Melior Motion GmbH. At the time, Schaeffler wanted to strengthen its position in the industrial automation market. The terms of the latest sale to GAM were not disclosed.
What happens next?
GAM says it will continue supporting existing customers who already use PSC products, so those businesses should not see a disruption in supply or service. Hartmut Hoffmann, who joined GAM-Melior GmbH as Managing Director, will oversee day-to-day operations and the ongoing development of the PSC line.
GAM, which was founded in 1990 and sells precision components to customers in aerospace, medical devices, semiconductor manufacturing, and industrial automation, says the acquisition fits its broader strategy of growing in high-precision robotics markets.
