Electrical-component maker Technitrol Inc. rose more than 33 percent this afternoon after announcing that it is selling its Danish-based Medtech components business for $200 million in cash to pay down debt.
Technitrol is selling the unit to Altor Fund III, a private-equity fund that invests in companies in the Nordic region.
Medtech, which generated revenues of $110 million for the year ended March 31, makes high-end microphones and electromechanical devices for the hearing aid, high-end audio headset, and medical device markets.
Trevose-based Technitrol said it would retain the former Sonion business, which sells high-volume transducers mainly for speakers used in cell phones and similar communication devices.
Technitrol, which expects to close the sale in late June or early July, said it will use the proceeds to reduce its outstanding debt. The company expects to reduce quarterly interests expenses by about $2 million.
Company shares gained $1.35 (33.83 percent) to trade at $5.34 this afternoon on the New York Stock Exchange.