GAM Enterprises, LLC has completed its acquisition of certain assets from Schaeffler Ultra Precision Drives GmbH i.L. (SUPD), a move that includes the intellectual property and technology behind the PSC gear reducer product line. This strategic acquisition by GAM, formally agreed on 14 April 2026, was announced this week and is set to enhance GAM’s standing in the precision motion control sector.
The transaction allows the Mount Prospect, Illinois-based manufacturer to strengthen its support for global automation and robotics customers. To manage its new assets, GAM has established GAM-Melior GmbH in Hameln, Germany, appointing Hartmut Hoffmann as managing director to oversee operations and continued development of the PSC product line.
GAM strengthens precision motion control portfolio
GAM’s purchase of Schaeffler’s precision drive assets represents a pivotal moment for the company, giving it greater control over a crucial component of its product portfolio. The PSC gear reducer has long been the core gearing technology used in GAM’s flagship GPL product, making this acquisition a natural progression for the business.
Craig Van den Avont, GAM’s chief executive officer, emphasised the strategic advantages this deal brings. He noted the acquired technology provides a highly differentiated solution for high-precision applications, fitting well within GAM’s wider motion control strategy for automation and robotics.
Vertical integration secures critical technology
Bringing the PSC technology in-house fundamentally changes GAM’s supply chain dynamics. It reduces the company’s reliance on external suppliers for a critical component, enhancing both its resilience and efficiency in manufacturing.
GAM, known for producing 90% of its gearboxes in the USA, will now expand its manufacturing capabilities by incorporating the acquired technology into its operations. This vertical integration allows for closer collaboration between design and production teams, potentially accelerating product development cycles for its customers in aerospace, automotive, medical, and robotics sectors.
Establishing GAM-Melior GmbH in Germany
The formation of GAM-Melior GmbH underscores the strategic importance of this acquisition, particularly for the European market. Based in Hameln, Germany, this new entity will oversee the manufacturing and continued development of the acquired PSC product line, ensuring continuity and further development.
Hartmut Hoffmann’s appointment as managing director signals GAM’s commitment to maintaining and evolving the PSC technology. Hoffmann will lead the operations and guide the ongoing development of the product line from its German base.
New German base enhances European market reach
The new Hameln operation positions GAM to better serve its European customer base and tap into the region’s engineering talent. This geographical expansion of GAM’s manufacturing footprint is a calculated move, bringing production and research and development capabilities closer to a key market.
The expansion also reflects GAM’s growth trajectory. The company has recorded double-digit compounded annual growth for more than two decades since its founding in 1990 by Gary A. Michalek. The company serves machine builders and robotic OEMs across a wide array of industries, and this new base strengthens its global capabilities.
Broader implications for automation and robotics
This acquisition directly strengthens GAM’s position in the rapidly expanding automation and robotics markets. Precision gear reducers are fundamental to the accurate and reliable operation of industrial robots and automated systems, which are increasingly crucial for modern manufacturing.
With direct control over the PSC technology, GAM can develop more tailored solutions for complex motion control challenges. This could involve bespoke designs or faster adaptations to emerging industry needs, benefiting customers who rely on GAM components for future mobility applications.
Enhancing product development and customer support
GAM plans to continue supporting existing customers of the PSC product line, ensuring a seamless transition and continuity of supply. Furthermore, the internalisation of this technology is expected to fuel continued research and development.
This deeper integration allows GAM to innovate on existing designs and explore new applications for the technology, fostering a competitive edge in a demanding market. Craig Van den Avont stated that the patented technology outperforms competing servo gearbox solutions, representing a highly differentiated solution.
Schaeffler’s ongoing strategic realignment
For Schaeffler, the divestiture of SUPD assets suggests a strategic recalibration within its vast industrial portfolio. The global automotive and industrial supplier acquired Melior Motion GmbH in January 2022. The business later became SUPD, to bolster its robotics offerings and expand its precision gearbox portfolio.
This latest transaction follows Schaeffler’s broader strategic transformation, including the successful merger of Vitesco Technologies Group AG into Schaeffler AG, completed on 1 October 2024. That merger aimed to create a ‘Motion Technology Company’ with four distinct divisions, while the sale may form part of Schaeffler’s broader portfolio consolidation, enabling Schaeffler to concentrate on other core areas.
Divestment aligns with portfolio optimisation
The sale of these assets reflects a focused approach to portfolio optimisation, a strategy commonly adopted by global industrial companies. Schaeffler Industrial Drives, a member of the Schaeffler Group, specialises in direct drive technology, including torque and linear motors and high-performance positioning systems.
Divesting the PSC product line likely allows Schaeffler to streamline its industrial business and concentrate resources where they align most effectively with its long-term vision. Such strategic acquisitions and divestments are key to adapting to dynamic industrial markets.
Long-term outlook for precision motion control
GAM’s vertical integration reflects a broader industry trend towards securing critical supply chains and achieving greater control over key components. Manufacturers in high-growth sectors, particularly automation and robotics, increasingly prioritise direct oversight to ensure reliability and foster innovation.
The precision motion control market continues its growth trajectory, driven by the increasing adoption of automated systems across various industries. GAM’s move positions it strongly to capitalise on this demand by enhancing product development capabilities, securing its supply chain, and expanding its global footprint.
