Regal Beloit to acquire Emerson's power transmission business
Regal Beloit Corporation has entered into an agreement to acquire the Power Transmission Solutions business of Emerson Electric Co. for approximately $1.4 billion.
The company will pay $1.4 billion in cash plus assume $40 million in liabilities.
"This acquisition will be transformational for Regal. PTS will broaden our portfolio, diversify our end market exposure and strengthen our global footprint," said chairman and CEO Mark Gliebe. "PTS brings complementary products and well-known brands, but more importantly a very talented team who are experts in their markets as well as very strong operators. We are excited to have PTS as part of the Regal family and we look forward to growing with them in our future."
PTS manufactures, sells and services bearings, couplings, gearing, drive components, and conveyer systems under brands including Browning, Jaure, Kop-Flex, McGill, Morse, Rollway, Sealmaster and System Plast. With annual revenues of approximately $600 million, PTS has over 3,000 employees around the world. PTS will become part of Regal's newly-defined Power Transmission segment.
"PTS is a strong business with an outstanding management team and excellent brand recognition. The business will benefit by joining Regal, who has a proven track record of success in building and growing businesses," said Emerson chairman and chief executive officer David N. Farr.
The transaction, which is subject to customary closing conditions, is expected to close in the first quarter of 2015. Shareholder approvals are not required to complete the transaction.
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