Altra Industrial Motion Corp. (NASDAQ:AIMC), a global manufacturer
and marketer of electromechanical power transmission and motion
control products, today announced that on December 30, 2016 it
closed on the acquisition of the Stromag business from GKN
plc. Stromag generated approximately 131 million euros in revenue
in 2015, and the acquisition is anticipated to be accretive to
Altra’s earnings in 2017, excluding any one-time or
acquisition-related costs.
The acquisition cost comprised the assumption of debt totaling
approximately 14 million euros and a cash consideration of
approximately 184 million euros and is subject to normal
adjustments related to working capital and other reconciling
items.
“Stromag provides Altra with complementary products, increased
presence in key geographic regions and penetration into new growth
end markets,” said Carl Christenson, Chairman and CEO of Altra. “It
has a strong reputation, and its highly engineered clutches,
brakes, torsional couplings and limit switches serve as excellent
product extensions for Altra. We are excited to welcome the more
than 700 Stromag employees to the Altra family.”
About Stromag
Stromag is a market-leader with a strong technology base and a
heritage of providing tailored, engineered solutions for its
customers. Its core products include an array of clutches and
brakes, flexible couplings, limit switches and friction
discs. Stromag serves the agricultural equipment,
construction, crane & hoist, marine, metal processing,
renewable energy and general industrial markets. Founded in 1932,
the business is headquartered in Unna, Germany and has operations
in Germany, France, the U.S., the UK, Brazil, India and China.
About Altra Industrial Motion Corp.
Altra Industrial Motion Corp., through its subsidiaries, is a
leading global designer, producer and marketer of a wide range of
electromechanical power transmission and motion control products.
The Company brings together strong brands covering over 40 product
lines with production facilities in twelve countries. Altra's
leading brands include Ameridrives Couplings, Bauer Gear Motor,
Bibby Turboflex, Boston Gear, Delroyd Worm Gear, Formsprag Clutch,
Guardian Couplings, Huco, Industrial Clutch, Inertia Dynamics,
Kilian Manufacturing, Lamiflex Couplings, Marland Clutch, Matrix,
Nuttall Gear, Stieber Clutch, Stromag, Svendborg Brakes, TB Wood's,
Twiflex, Warner Electric, Warner Linear, and Wichita Clutch.
The Altra logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4038.
All statements, other than statements of historical fact
included in this release are forward-looking statements, as that
term is defined in the Private Securities Litigation Reform Act of
1995. These statements include, but are not limited to, any
statement that may predict, forecast, indicate or imply future
results, performance, achievements or events. Forward-looking
statements can generally be identified by phrases such as
"believes," "expects," "potential," "continues," "may," "should,"
"seeks," "predicts," "anticipates," "intends," "projects,"
"estimates," "plans," "could," "designed," "should be," and other
similar expressions that denote expectations of future or
conditional events rather than statements of fact. Forward-looking
statements also may relate to strategies, plans and objectives for,
and potential results of, future operations, financial results,
financial condition, business prospects, growth strategy and
liquidity, and are based upon financial data, market assumptions
and management's current business plans and beliefs or current
estimates of future results or trends available only as of the time
the statements are made, which may become out of date or
incomplete. Forward-looking statements are inherently uncertain,
and investors must recognize that events could differ significantly
from our expectations. These statements include, but may not be
limited to, those relating to the Company's expectations with
respect to the accretive impact of the Stromag acquisition on the
Company's earnings.
In addition to the risks and uncertainties noted in this
release, there are certain factors that could cause actual results
to differ materially from those anticipated by some of the
statements made. These include: (1) competitive pressures, (2)
changes in economic conditions in the United States and abroad and
the cyclical nature of our markets, (3) loss of distributors, (4)
the ability to develop new products and respond to customer needs,
(5) risks associated with international operations, including
currency risks, (6) accuracy of estimated forecasts of OEM
customers and the impact of the current global economic environment
on our customers, (7) risks associated with a disruption to our
supply chain, (8) fluctuations in the costs of raw materials used
in our products, (9) product liability claims, (10) work stoppages
and other labor issues, (11) changes in employment, environmental,
tax and other laws and changes in the enforcement of laws, (12)
loss of key management and other personnel, (13) risks associated
with compliance with environmental laws, (14) the ability to
successfully execute, manage and integrate key acquisitions and
mergers, (15) failure to obtain or protect intellectual property
rights, (16) risks associated with impairment of goodwill or
intangibles assets, (17) failure of operating equipment or
information technology infrastructure, (18) risks associated with
our debt leverage and operating covenants under our debt
instruments, (19) risks associated with restrictions contained in
our Convertible Notes and Credit Facility, (20) risks associated
with compliance with tax laws, (21) risks associated with the
global recession and volatility and disruption in the global
financial markets, (22) risks associated with implementation of our
ERP system, (23) risks associated with the Svendborg, Guardian and
Stromag acquisitions and integration and other acquisitions,
including but not limited to risks related to the integration of
Stromag's sales force, management team and other employees and
failure to close the Stromag acquisition, (24) risks associated
with the closure of the Company's manufacturing facility in
Changzhou, China, (25) risks associated with certain minimum
purchase agreements we have with suppliers, (26) risks associated
with our exposure to variable interest rates and foreign currency
exchange rates, (27) risks associated with interest rate swap
contracts, (28) risks associated with the potential dilution of our
common stock as a result of our convertible notes, (29) risks
associated with our exposure to renewable energy markets, (30)
risks related to regulations regarding conflict minerals, (31)
risks related to restructuring and plant consolidations, (32) risk
associated with the UK vote to leave the European Union and (33)
other risks, uncertainties and other factors described in the
Company's quarterly reports on Form 10-Q and annual reports on Form
10-K and in the Company's other filings with the U.S. Securities
and Exchange Commission (SEC) or in materials incorporated therein
by reference. Except as required by applicable law, Altra
Industrial Motion Corp. does not intend to, update or alter its
forward-looking statements, whether as a result of new information,
future events or otherwise. AIMC-G
Contact: Altra Industrial Motion Corp.
Christian Storch, Chief Financial Officer
(781) 917-0541
christian.storch@altramotion.com
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