Home / News / Press Release Details

Press Release Details

scroll to top
View all news

Altra Holdings, Inc. Agrees to Sell Adjustable Speed Drives Business to Vacon

December 19, 2007

QUINCY, Mass., Dec 19, 2007 (PrimeNewswire via COMTEX News Network) -- Altra Holdings, Inc. (Nasdaq:AIMC), a multi-national designer, manufacturer, and marketer of industrial power transmission and motion control products, today 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.

About Altra

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.

The Altra Holdings, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4038

This press release includes statements which are forward looking within the meaning of applicable securities laws. These statements may include or imply projections of future performance that are based upon the company's expectations or assumptions. These expectations and assumptions, as well as the company's future performance, are subject to a number of risks and uncertainties. Factors that could cause actual results to differ from projected results are discussed in the company's Registration Statement on Form S-1 filed on June 4, 2007 with the Securities and Exchange Commission. Altra Holdings, Inc. is under no obligation to, and expressly disclaims any obligation to, update or alter its forward looking statements, whether as a result of new information, future events or otherwise. AIMC-E

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: Altra Holdings, Inc.

Altra Holdings, Inc.  
          Christian Storch, Chief Financial Officer 
          (617) 689-6380 

(C) Copyright 2007 PrimeNewswire, Inc. All rights reserved.

News Provided by COMTEX

Categories: Press Releases
View all news