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.