03.01.2008
Vacon to complete acquisition of TB Wood’s AC drives business
Vacon has now completed the acquisition of TB Wood’s AC drives business, initially announced on December 19, 2007. The acquired business will be incorporated into Vacon’s consolidated financial statements as from the beginning of January 2008. The acquisition is not expected to have a material impact on Vacon Group’s earnings per share in 2008 and 2009.
TB Wood’s 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.
“Strengthening our global market position is a cornerstone of Vacon’s strategy. This acquisition will give a significant boost to Vacon’s growth potential and market position, since the product ranges and customer bases of the companies complement each other. Specializing in AC drives for demanding environments, TB Wood’s has operations in the United States, Europe and Asia, and indepth knowhow in AC drives and applications. We also see synergy benefits to be gained in R&D and in supplier networks,” says Vesa Laisi, President and CEO of Vacon Plc.
Vacon in brief:
The Vacon Group (OMX:VAC1V) was founded in 1993 for one purpose only: to create, develop and provide AC drives worldwide. The company’s ambition is to meet the most demanding needs of customers looking for the ultimate in performance, ease of use and reliability. Vacon offers AC drives in the power range of 0.25 kW...5 MW. In 2006, Group revenues totalled EUR 186.4 million.
Vacon Group
Further information:
- Vesa Laisi, President and CEO, mobile: +358 (0)40 8371 510
- Mika Leppänen, Vice President, Finance & Control, mobile +358 (0)40 8371 235
Distribution:
Helsinki Exchanges
Financial Supervision Authority
Main media
19.12.2007
Vacon to acquire AC drives business of TB Wood’s
Finland-based AC drives manufacturer Vacon is to acquire the AC drives business of TB Wood’s, which is part of US-based Altra Holdings Inc. 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. The aggregate purchase price will be USD 29.0 million.
“Strengthening our global market position is a cornerstone of Vacon’s strategy. This acquisition will give a significant boost to Vacon’s growth potential and market position, since the product ranges and customer bases of the companies complement each other. Specializing in AC drives for demanding environments, TB Wood’s has operations in the United States, Europe and Asia, and indepth knowhow in AC drives and applications. We also see synergy benefits to be gained in R&D and in supplier networks,” says Vesa Laisi, President and CEO of Vacon Plc.
The aggregate purchase price is USD 29.0 million, and Vacon will finance the acquisition with debt. TB Wood’s AC drives business will be merged into Vacon Group, and TB Wood’s personnel who are part of that business will become Vacon employees. It is planned to incorporate the acquired business into Vacon’s 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’s earnings per share in 2008 and 2009. The boards of directors of both companies have unanimously approved the acquisition, which is subject to customary closing conditions.
Vacon and TB Wood’s have cooperated for more than ten years. TB Wood’s has sold Vacon AC drives under their own brand as part of their product range, and the company has also been Vacon’s authorized service centre in the United States for many years. TB Wood’s brand will be replaced by the Vacon brand over a transition period of 18 months.
TB Wood’s 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’s has extensive knowhow in application development and in designing AC drives for very harsh environments, which will expand Vacon’s product offering. The size of the market for these AC drives is about USD 300 million.
The AC drives business of TB Wood’s employs more than 160 people. It had reported revenues in 2006 of USD 39.2 million and an operating profit of USD 1.8 million.
Ernst & Young Oy Transaction Advisory Services acts as Vacon’s financial advisor for this transaction.
Vacon in brief:
The Vacon Group (OMX:VAC1V) was founded in 1993 for one purpose only: to create, develop and provide AC drives worldwide. The company’s ambition is to meet the most demanding needs of customers looking for the ultimate in performance, ease of use and reliability. Vacon offers AC drives in the power range of 0.25 kW...5 MW. In 2006, Group revenues totalled EUR 186.4 million.
Dial-in conference for investors and investment analysts
A dial-in conference in English for investors and investment analysts will be held on December 19, 2007 at 11.00 a.m. CEO Vesa Laisi, Executive VP Heikki Hiltunen and CFO Mika Leppänen will participate in the conference. Lines can be booked ten minutes before the conference by calling the service number +44 (0)20 7162 0025. The conference ID code is ”Vacon Oyj”.
Conference link: http://wcc.webeventservices.com/view/wl/r.htm?e=99801&s=1&k=
E6C6593D988618CCD1E243A10279C12B&cb=genesys
To hear a recording of the conference, available for two working days, call +44 207 031 4064, ID code 779026.
Conference for the media
A press conference will be held at the Vacon headquarters (address: Runsorintie 7) in Vaasa, Finland, today on December 19, 2007 at 12.00.
Vacon Group
Further information:
- Vesa Laisi, President and CEO, mobile: +358 (0)40 8371 510
- Heikki Hiltunen, Executive Vice President, mobile +358 (0)40 8371 609
- Mika Leppänen, Vice President, Finance & Control, mobile +358 (0)40 8371 235
- www.vacon.com
Distribution:
Helsinki Exchanges
Financial Supervision Authority
Main media
