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Mass. firm to buy TB Wood's Corp.

February 22, 2007|by DON AINES

CHAMBERSBURG, Pa. - After 150 years as an independent manufacturer, TB Wood's Corp. announced this week that it has reached an agreement to be acquired by Altra Holdings Inc. of Quincy, Mass.

According to a joint announcement issued Monday, the boards of directors of TB Woods and Altra both unanimously approved the deal, which calls for Altra to make a cash tender of $24.80 per share for all outstanding shares. The offer is expected to close in April 2007 and is subject to at least two-thirds of TB Wood's stock being tendered and not withdrawn.

The largest TB Wood's stockholder, Thomas Foley, has agreed to tender 1.6 million shares, about 42 percent of the issued and outstanding shares, the announcement stated.

If the sale goes through, TB Wood's will merge with a subsidiary of Altra Holdings, Altra Industrial Motion, which designs, manufactures and markets electromechanical power transmission equipment.

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Founded in 1857, TB Wood's designs, manufactures and markets electronic and mechanical industrial power transmission equipment, according to the announcement.

TB Wood's Chief Financial Officer Joseph C. Horvath said the company has more than 800 employees worldwide, about 400 of them in this area, including the corporate headquarters in Chambersburg and manufacturing facilities in Chambersburg and Scotland, Pa.

Horvath would not say how much the acquisition would cost Altra Holdings.

"TB Wood's is a great fit with the existing Altra platforms and meets our disciplined acquisition philosophy perfectly," Michael L. Hurt, chairman of Altra, said in the announcement. Hurt had been president and chief executive officer at TB Wood's from 1991 to 2003.

"Joining forces with Altra marks a new future and new opportunities for TB Wood's and its talented and loyal employees," said TB Wood's Chairman G. John Krediet.

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