Regal Beloit Acquires Industrial Motor Operations in China
26 April 2008 - 12:08AM
PR Newswire (US)
BELOIT, Wis., April 25 /PRNewswire-FirstCall/ -- Regal Beloit
Corporation (NYSE:RBC) today announced that the Company has
acquired Joyce Court Holdings Ltd. and Grand Delight Investments
Ltd., sole shareholders of Wuxi Hwada Motor Co. and Wuxi New Hwada
Motor Co. (collectively Hwada) located in Wuxi, China. Hwada is a
leading designer and manufacturer of Integral IEC and NEMA electric
motors, which are used in various industrial applications such as
compressor, pump, paper and steel processing, and power plants. The
product line includes motors up to 5000 kw (6700 hp). Approximately
50% of Hwada's product sales are in the China industrial markets.
The other 50% is exported to Europe (35%), the United States (10%)
and Southeast Asia (5%). The business will be reported as part of
the Company's Electrical Segment. The business is expected to add
approximately $75.0 to $80.0 million to sales and add $.04 to $.06
to diluted earnings per share in 2008. The Company's guidance
includes the estimated impact of purchase accounting and intangible
amortization based on the preliminary purchase price allocation.
The purchase price was $27.6 in cash and the assumption of
approximately $8.0 million in net liabilities. Additionally, under
the terms of the transaction, the Company will pay to the seller up
to $8.5 million received by the Company in the future upon the sale
of certain real property rights owned by Hwada. According to Henry
W. Knueppel, Chairman and CEO of Regal Beloit, "We are very excited
to announce the acquisition of Hwada. This is another significant,
strategic-focused expansion of our industrial business in high
growth markets. The acquisition represents our first wholly owned
industrial motor facility in China. Hwada is currently one of the
top industrial motor companies in China. It enjoys a reputation of
product excellence and rapid growth and comes with an excellent
management team." The Company will further discuss this acquisition
at the upcoming First Quarter Earnings conference call scheduled
for May 1, 2008. For details on the conference call, please refer
to the conference call press release which can be found on the
Company's website. 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. 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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