Regal Beloit buys Australian motor maker

Regal Beloit Corporation has acquired CMG Engineering Group Pty. Ltd. headquartered in Melbourne, Australia.

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CMG manufactures and distributes fractional horse power industrial motors, blower systems, and industrial metal products with operations in Australia, New Zealand, South Africa, Malaysia, Singapore, the United Kingdom, and the Middle East. Also included is CMG's Technology center and certified motor and drive testing facilities located in Australia. The business also distributes integral horsepower industrial motors, mechanical power transmission products, material handling equipment, electrical insulating materials, magnet wire, and specialty conductors in Australia and New Zealand.

The purchase price was approximately $75.0 million in cash, the assumption of approximately $5.5 million in net liabilities and one hundred thousand shares of Regal Beloit common stock.

The business is expected to add approximately $92.0 million to sales in 2010. Sales for CMG in 2011 are expected to be approximately $128.0 to $135.5 million.

"We have for some time searched for a commercial infrastructure in these important geographical regions that would allow us to leverage our global manufacturing platform. The combination of CMG and Regal Beloit's Asia Pacific operations creates both a leading commercial and manufacturing footprint and an opportunity to take advantage of significant synergies between the organizations," said Henry W. Knueppel, Regal Beloit chairman and CEO.

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