Warren Veltman, president and CEO, commented, "The divestiture of our Life Sciences division is an important milestone for NN to drive improved performance and generate long-term shareholder value. The proceeds from the sale will enable us to continue to pay down our debt and improve our balance sheet. With increased financial flexibility, we are now better positioned to capitalize on the synergistic assets, talent and global footprint of our Mobile Solutions and Power Solutions businesses to pursue key growth areas that will help drive operating performance, margin improvements and generate increased free cash flow."
With the proceeds from the transaction, NN expects to reduce its net leverage from approximately 6.1x to approximately 1.8x. Going forward, NN will be well-positioned as a diversified industrial platform with a growth trajectory of approximately $600 million in annual sales over the next five years. The company will leverage the synergistic offerings of its Mobile Solutions and Power Solutions businesses to unlock growth opportunities within its dynamic end markets, including electric vehicles and charging stations and aerospace and defense.
J.P. Morgan served as NN's financial advisor and Simpson Thacher & Bartlett LLP served as its legal advisor on the transaction.