Genstar backs machine parts merger

A portfolio company of San Francisco-based Genstar will acquire power transmission maker TB Wood’s.

Altra Holdings – private equity firm Genstar Captial’s consolidation platform for power transmission firms – is acquiring TB Wood’s Corporation for $24.80 per share, or approximately $92.8 million (€70.6 million).

The cash transaction is expected to close in the second quarter of 2007.

Altra CEO Michael Hurt issued a statement noting the acquisition adds technology, such as engineered belt drive systems and adjustable speed electronic drives, which will help grow the company’s coupling product line.

“TB Wood’s is a great fit with the existing Altra platforms and meets our disciplined acquisition philosophy perfectly,” Hurt said.

News of the deal sent TB Wood’s shares to a 52-week high during Tuesday trading on the NASDAQ; it closed at $24.67 per share, up $7.67, or 45 percent from the previous day’s closing share price.

Altra’s shares closed Tuesday at $16.58, up 18 cents per share, or 1.1 percent, from Monday’s close.

Taken public in December 2006, Altra was created by Genstar in 2004 with the acquisitions of Colfax Power Transmission Group, of Burr Ridge, Illinois, and Kilian Manufacturing Corporation, of Syracuse, New York. Subsequent add-on acquisitions have included UK-based manufacturer Hay Hall Group and Belvidere, Illinois-based Bear Linear. Genstar continues to hold a 30 percent stake in Altra, which has 35 product lines from brands including Warner Electric, Boston Gear, Marland Clutch and Ameridrives Couplings.

San Francisco-based private equity firm Genstar focuses on industries including industrial technology, life sciences and healthcare, and typically targets companies with revenues of $50 million to $1 billion. Genstar closed its fourth fund in 2004 at $475 million, and now manages more than $900 million in capital.