Altra Holdings Inc announced its plan to purchase Danish company Svendborg for EUR80.1 million. This acquisition deal aims to expand its product lines of clutches and brakes and gain new technologies, according to a report by Reuters.
Altra is a company that produces mechanical transmission products such as couplings, brakes, and clutches. It said it will finance the said acquisition deal through a credit agreement that combines its cash and additional borrowings, the report explained.
Svendborg is a private mining and energy company that was founded in 1884. It is currently based in Denmark. It expects the acquisition deal to generate about EUR62 million (USD83.87 million) in revenues for this year, said the report.
According to Altra, it expects the deal to result in a 10 to 15 cents increase in share to its earnings for next year. It also expects its 2014 sales to fall in the range of USD790 to USD820 million, said Reuters.
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