ITT, a US energy and transport component supplier has signed an agreement to acquire Axtone, a manufacturer of railway components from Poland.
The transaction represents a cash consideration of approximately USD 118 million that will be primarily funded from the company’s foreign cash. The final purchase price is subject to a customary net working capital adjustment. The transaction is expected to close in the first quarter of 2017, subject to customary closing conditions, including appropriate regulatory approvals.
The acquisition will be highly complementary to ITT’s legacy KONI brand as Axtone produces energy absorption solutions such as springs, buffers and coupler components that are critical safety technologies.
“The addition of Axtone’s high-quality portfolio and leading technologies will serve to further position our growing Motion Technologies business as a global transportation leader with strong capabilities and reach to provide a premier experience to our customers,” ITT CEO and President Denise Ramos said.
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