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 GAM Schaeffler acquisition, 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 deepen 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, solidifying its hold on a crucial component in its product line. The PSC gear reducer has long been the core gearing technology 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 alters 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 extend its manufacturing capabilities by integrating this intellectual property. 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 specifically support and manufacture 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 critical production and research and development closer to a significant market.
It also reflects GAM’s growth trajectory, having experienced double-digit compounded annual growth for over 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 for components in their systems for future mobility applications.
Enhancing product development and customer support
GAM plans to support 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 this patented technology outperforms other servo gearboxes, 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 had acquired Melior Motion GmbH in January 2022, which 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, and this sale might be part of that consolidation, enabling Schaeffler to concentrate on other core areas.
Divestment aligns with portfolio optimisation
The sale of these assets indicates a focused approach to portfolio optimisation, common among global industrial players. 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 in 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 with enhanced product development capabilities, securing its supply chain, and expanding its global footprint.
