Charlotte-based industrial manufacturing company NN, Inc. sold its life sciences division for an estimated $700 million in net proceeds, the company announced Tuesday.

NN sold the division to the New York-based American Securities LLC to be combined with MW industries, one of its portfolio companies. NN originally announced the deal in late August, estimating the transaction would be completed in the fourth quarter of 2020.

The company plans to use its proceeds from selling the life sciences division to “pay down its debt and strengthen its balance sheet,” NN said in a press release.

Earlier this year, NN reported an earnings loss in the second quarter as its life sciences division saw a decline in income.

With the proceeds from selling the life sciences division, NN said in the press release that it expects to reduce its net leverage to about 1.8x from about 6.1x. Net leverage, measured as a ratio, is a measurement of how long it would take a company to pay back its existing debt.

“The divestiture of our Life Sciences division is an important milestone for NN to drive improved performance and generate long-term shareholder value,” NN President and CEO Warren Veltman said in a statement.

Veltman added that the sale would bring increased financial flexibility and allow the company to help drive performance, margin improvements and free cash flow.

JPMorgan was NN’s financial advisor for the transaction, while Simpson Thacher & Bartlett LLP was its legal advisor.

Shares of NN stock were trading at $5.97 Tuesday morning, down 6 cents, or 1 percent.