(Adds details on deal, CEO comment)
March 7 (Reuters) - Altra Industrial Motion Corp said on Wednesday it would buy four units of Fortive Corp's automation & specialty business in a $3 billion deal to bolster its presence in the power transmission and motion control industry.
The deal comprises $1.4 billion in cash and debt and $1.6 billion in newly issued shares to Fortive's shareholders, the companies said in a statement.
Altra makes mechanical power transmission components used in industrial applications. Fortive's automation & specialty business makes mechanical parts such as clutches and brakes.
Structured as a Reverse Morris Trust deal, the transaction will be tax-free for shareholders.
Fortive will contribute a part of its automation and specialty business to a new wholly owned unit of Fortive which with then merge with a unit of Altra.
"With Fortive A&S, we gain exposure to industries with attractive secular growth dynamics, including the medical, robotics, factory automation and food and beverage industries," Altra Chief Executive Officer Carl Christenson said in a statement.
The deal is expected to close by end of 2018.
Goldman Sachs & Co is Altra's financial adviser, while UBS Investment Bank advised Fortive. (Reporting by Sanjana Shivdas in Bengaluru Editing by Saumyadeb Chakrabarty)