NEW YORK (Thomson Financial) - Tecumseh Products Co. said it signed an
agreement to sell its engine and power train business to affiliates of Platinum
Equity LLC for $51 million in cash.
The Tecumseh, Mich., maker of hermetic compressors said it will use proceeds
to pay off the balance of its outstanding first lien credit agreement, thereby
eliminating all of the company's domestic debt. The company expects the deal to
close during the fourth quarter.
"This agreement marks the achievement of another important step in our
ongoing efforts to refocus on our core business operations," the company said in
a news release Tuesday. The company plans to focus on its compressor business in
order to improve its financial performance.
The business to be sold includes Tecumseh's gasoline engine and transmission
manufacturing capabilities for snow throwers, generators, and other lawn and
garden, industrial, and agricultural applications. Locations affected include
facilities in Grafton, Wis.; Salem, Ind.; Dunlap, Tenn.; as well as locations in
the United Kingdom and the Czech Republic. TMT Motoco, the engine facility in
Brazil, isn't included in the deal.
Rothschild Inc. served as financial advisor on the deal.
Michelle Rama
mr/jw
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