QUINCY, MA (PRIME NEWSWIRE) -- Altra Holdings, Inc. (Nasdaq:AIMC), a multi-national designer, manufacturer, and marketer of industrial power transmission and motion control products, announced that it has signed a definitive agreement to divest its TB Wood's Adjustable Speed Drives business to Finland-based Vacon. The divestiture includes the products manufactured at the company's facilities in Scotland, PA; Chattanooga, TN; Naturns, Italy; Marienheide, Germany; and Bangalore, India. Revenue for this business in 2006 was $39.2 million and the purchase price in this all cash transaction will be $29 million on a cash free debt free basis. Altra will also receive additional consideration from Vacon through facility leases in North America and transition services to be provided by Altra for a period of time after closing.
Michael Hurt, Chairman and CEO for Altra stated: "Vacon is a strategically placed global supplier of adjustable speed drives. For the continued growth of our employees and the uninterruptible supply of products to our customers, we are pleased to announce this transaction. This divestiture will enable Altra to continue its strategic focus on its core electro-mechanical power transmission business while strengthening the company's balance sheet at the same time."
Altra will continue to own, operate and focus on growing the TB Wood's Mechanical business consisting of belted drives, engineered couplings, and other power transmission components. Under the terms of the agreement, Altra will license the use of the TB Wood's brand name to Vacon for an 18 month transition period. This transaction is expected to close within the next two weeks.
Altra Holdings, Inc. (Nasdaq:AIMC), through its wholly-owned subsidiary Altra Industrial Motion, Inc., is a leading multi-national designer, producer and marketer of a wide range of electromechanical power transmission products. The company brings together strong brands covering over 40 product lines with production facilities in nine countries. Our leading brands include Boston Gear, Warner Electric, TB Wood's, Formsprag Clutch, Wichita Clutch, Ameridrives Couplings, Kilian Manufacturing, Marland Clutch, Nuttall Gear, Stieber Clutch, Twiflex Limited, Bibby Transmissions, Matrix International, Inertia Dynamics, Huco-Dynatork, Warner Linear, and All Power Transmissions.