Altra Holdings to buy Denmark's Svendborg for about $108 mln

Wed Nov 6, 2013 11:59pm EST

Nov 6 (Reuters) - Altra Holdings Inc said it will buy Danish firm Svendborg for about 80.1 million euros ($108 million) in cash to gain access to newer technologies and expand its product offerings in clutches and brakes.

Altra, which makes mechanical power transmission products such as brakes, clutches and couplings, said it intends to finance the deal through a combination of cash and additional borrowings under its credit agreement.

Founded in 1884, privately held Svendborg is headquartered in Denmark and caters to the mining and energy markets. It is expected to generate revenue of about 62 million euros ($83.87 million) in 2013.

Altra said it expected the deal to add 10 cents to 15 cents per share to its 2014 earnings. It expects 2014 sales in the range of $790 to $820 million and non-GAAP diluted earnings per share of $1.80 to $1.95.

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