Regal Beloit Acquires Jakel Incorporated and Completes FASCO Acquisition
04 September 2007 - 1:30PM
PR Newswire (US)
BELOIT, Wis., Sept. 4 /PRNewswire-FirstCall/ -- Regal Beloit
Corporation (NYSE:RBC) today announced that the Company has
acquired Jakel Incorporated and completed the previously announced
acquisition of the FASCO Residential/Commercial and FASCO
Asia/Pacific operations from Tecumseh Products Company
(NASDAQ:TECUANASDAQ:TECUB). Both of the acquired businesses
manufacture and market motors and blower systems for a variety of
air moving applications including alternative fuels systems, water
heaters, heating, ventilating and air conditioning (HVAC) systems
and other commercial segments. The two independent businesses will
be combined and operate as a single unit as part of the Company's
Electrical Segment. The purchase price for the FASCO businesses was
approximately $220 million. The purchase price for Jakel was not
disclosed. The purchase prices for both businesses were paid in
cash, but are subject to final working capital and other customary
post close adjustments. The Company financed the purchases by
utilizing the proceeds from the recently completed private debt
placement. Regal Beloit expects the combined businesses to add
approximately $30 million and $85 million to sales for the third
and fourth quarters of 2007, respectively. The acquired businesses
are anticipated to add approximately $355 million in sales to 2008.
It is expected that the combined businesses will be effectively
neutral (-$.02 to +$.02) to diluted earnings per share for 2007 and
add $.20 to $.25 to diluted earnings per share in 2008, including
planned synergies. The Company's estimates include the impact of
purchase accounting and estimates for the allocation of the
purchase price. According to Henry W. Knueppel, Chairman and CEO of
Regal Beloit, "These businesses are a synergistic and natural fit
with Regal Beloit's current product offerings. Specifically, these
acquisitions will allow us to expand our offering of energy
efficient systems solutions to our customers, in addition to
expanding our global manufacturing and commercial footprints, and
furthering our ability to bring innovative products to our
customers." The six facilities included with the acquisitions are
FASCO's manufacturing and distribution facilities in Eldon and
Cassville, Missouri, Piedras Negras, Mexico, Bangkok, Thailand and
Melbourne, Australia and Jakel's manufacturing facility in Piedras
Negras, Mexico. Robert W. Baird & Co. served as the exclusive
financial advisor to Regal Beloit for both transactions. Regal
Beloit will hold a conference call on September 04, 2007 at 10:00
am (CT), 11:00 am (ET) to discuss these acquisitions. Interested
parties may participate in the call by dialing 800-288-8976. The
replay, which will be available until September 14, may be accessed
by calling 800-475-6701, pass code 886107. About REGAL BELOIT
CORPORATION: Regal Beloit Corporation is a leading manufacturer and
marketer of branded mechanical and electrical motion control and
power generation products serving markets throughout the world.
Regal Beloit is headquartered in Beloit, Wisconsin, and has
manufacturing, sales, and service facilities throughout the United
States, Canada, Mexico, Europe and Asia. About Tecumseh Products
Company Tecumseh Products Company is a full-line independent global
manufacturer of hermetic compressors for residential and commercial
refrigerators, freezers, water coolers, dehumidifiers, window air
conditioning units and residential and commercial central system
air conditioners and heat pumps; and gasoline engines and power
train for snow throwers, industrial and agricultural applications
and recreational vehicles. CAUTIONARY STATEMENT The following is a
cautionary statement made under the Private Securities Litigation
Reform Act of 1995: With the exception of historical facts, the
statements contained in this press release may be forward looking
statements. Forward-looking statements represent our management's
judgment regarding future events. We cannot guarantee the accuracy
of the forward-looking statements, and you should be aware that
results and events could differ materially and adversely from those
contained in the forward-looking statements due to a number of
factors, including: unexpected issues and costs arising from the
closing of the transaction and the integration of acquired
companies and businesses and marketplace acceptance of these and
other recent acquisitions, including the loss of, or a decline in
business from, any significant customers of Regal Beloit or the
acquired businesses. All subsequent written and oral
forward-looking statements attributable to us or to persons acting
on our behalf are expressly qualified in their entirety by the
applicable cautionary statements. The forward-looking statements
included in this press release are made only as of the date of this
release, and we undertake no obligation to update these statements
to reflect subsequent events or circumstances. DATASOURCE: Regal
Beloit Corporation CONTACT: David A. Barta, Vice President, Chief
Financial Officer of Regal Beloit Corporation, +1-608-361-7405 Web
site: http://www.regal-beloit.com/
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