Alta Holdings Acquires TB Woods
February 22, 2007—Altra Holdings, Inc. and TB Woods Corp. announced that they have entered into a definitive agreement specifying that Altra will acquire TB Woods for $24.80 per share. According to an announcement on Altra Motions website, the boards of directors of both companies have unanimously approved the transaction.
Michael L. Hurt, Chairman and CEO of Altra, says, "The acquisition of TB Woods broadens our growing coupling product line and adds engineered belted drive systems as well as adjustable speed electronic drives and systems to our product portfolio."
The acquisition of TB Woods is expected to be immediately accretive to Altras earnings in 2007 and approximately 15-20 cents per share accretive to fully-diluted earnings per share in years 2008-2009.
TB Woods complementary product lines will expand Altras breadth of products and provide access to new markets. TB Woods offering of elastomeric couplings will expand engineered coupling revenues by over 50%.
The strength and brand recognition of the TB Woods name will be a solid addition to Altras brands. The company says Altra revenues generated through distribution will increase by approximately 37% and will enable the combined company to serve this channel more efficiently, offering a broader portfolio of products and services.
In addition to five U.S. manufacturing locations, TB Woods will expand Altras global footprint by adding facilities and resources in Mexico, Italy, and India.