Altra Holdings Inks Definitive Deal To Buy Svendborg Brakes - Quick Facts

(RTTNews) - Altra Holdings Inc. (AIMC) announced that it has signed definitive agreement to buy Svendborg Brakes A/S and S.B. Patent Holding ApS shares for a cash consideration of 80.1 million Euros, less cash remaining on the balance sheet at close, which is payable upon completion of acquisition. The finalization of transaction is expected to take place during fourth quarter of 2013.

Altra intends to finance the transaction through a combination of European cash and additional borrowings under its credit agreement.

The acquisition is anticipated to be accretive to Altra Holdings' earnings in 2014 in the range of $0.10 to $0.15 per diluted share, excluding any one-time or acquisition-related costs.

Upon completion of this acquisition, Altra is forecasting 2014 sales in the range of $790 to $820 million and Non-GAAP diluted earnings per share of $1.80 - $1.95. Altra expects capital expenditures to be in the range of $22 to $24 million and depreciation and amortization to be between $34 and $36 million for 2014. Altra expects its full year 2014 tax rate to be between 31% and 33% before discrete items.

A privately held company headquartered in Denmark, Svendborg is anticipated to generate approximately 62 million Euros in revenues for 2013.