BRAINTREE, Mass., Feb. 28, 2011 (GLOBE NEWSWIRE) -- Altra Holdings, Inc. (Nasdaq:AIMC), today announced that it has signed a definitive agreement to acquire substantially all of the assets of Danfoss Bauer GmbH ("Bauer") relating to its gearmotor business for a cash consideration of 43.1 million Euro, subject to adjustments for working capital and other items, which are payable at closing. The finalization of the transaction is subject to customary closing conditions, including receipt of required regulatory approvals, and is expected to take place during the second quarter of 2011. The acquisition is anticipated to be accretive to Altra Holdings' earnings in 2011 excluding any one-time or acquisition related costs.
Bauer is a leading European manufacturer of high-quality gearmotors, offering engineered solutions to a variety of industries, including material handling, metals, food processing and energy. In addition to a strong presence in Germany, the company has a well-established sales network in 15 additional countries in Western and Eastern Europe, Russia, China, and the United States. A privately held company headquartered in Esslingen, Germany, Bauer generated approximately 73.4 million Euro in revenue for 2010.
"This agreement is an exciting and important milestone for Altra," said Carl Christenson, Altra's president and CEO. "The acquisition of Bauer meets all of our acquisition criteria and we are looking forward to Bauer becoming an important part of Altra. The Bauer brand is very well regarded, the products are a terrific extension to our line and the geographic strengths of Bauer and Altra will provide synergistic top-line opportunities. In addition, the Bauer management team is very strong with a solid top and bottom line growth strategy that dovetails very nicely with Altra's strategy. We are particularly excited about Bauer's European and emerging market presence and Altra's ability to provide Bauer with additional access to the North American market." Nis Storgaard, Danfoss Chief Development Officer added "We are happy that we have found a new owner that will support Bauer and its employees to further develop and grow the business."