Product category:
Motors and Variable speed drives
News Release from: Vacon
Edited by the Processingtalk Editorial
Team on 21 December 2007
Vacon to acquire AC drives business of
TB Wood
Finland-based AC drives manufacturer Vacon is to acquire the AC drives business of TB Wood, which is part of US-based Altra Holdings
After the acquisition, Vacon will have sales on all continents, and R+D and production on three continents The transaction includes two factories in the United States, one factory in Italy and one in India, and a sales company in Germany
This article was originally published on Processingtalk on 27 Oct 2005 at 8.00am (UK)
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"Strengthening our global market position is a cornerstone of the Vacon strategy" says Vesa Laisi, President and CEO of Vacon: "This acquisition will give a significant boost to the Vacon growth potential and market position, since the product ranges and customer bases of the companies complement each other.
Specialising in AC drives for demanding environments, TB Wood has operations in the United States, Europe and Asia, and in-depth knowhow in AC drives and applications.
We also see synergy benefits to be gained in R+D and in supplier networks".
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The aggregate purchase price is USD29million, and Vacon will finance the acquisition with debt.
The TB Wood AC drives business will be merged into Vacon Group, and the TB Wood personnel who are part of that business will become Vacon employees.
It is planned to incorporate the acquired business into the Vacon consolidated financial statements by the end of January 2008 at the latest.
The acquisition is not expected to have a material impact on Vacon Group earnings per share in 2008 and 2009.
The boards of directors of both companies have unanimously approved the acquisition, which is subject to the customary closing conditions.
Vacon and TB Wood have cooperated for more than ten years.
TB Wood has sold Vacon AC drives under their own brand as part of their product range, and the company has also been the authorised Vacon service centre in the United States for many years.
The TB Wood brand will be replaced by the Vacon brand over a transition period of 18 months.
TB Wood has been operating in the electronics business for about 40 years, and the company has a strong market position in power transmission products in North America.
Power transmission products include belted drives and engineered couplings.
The company is known as a manufacturer of demanding customer-specific products for OEMs and end-customers in the United States, Europe and India.
TB Wood has extensive know-how in application development and in designing AC drives for very harsh environments, which will expand the Vacon product offering.
The size of the market for these AC drives is about USD300million.
The AC drives business at TB Wood employs more than 160 people.
It had reported revenues in 2006 of USD 39.2million and an operating profit of USD1.8 million.
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