BELOIT, Wis., April 6 /PRNewswire-FirstCall/ -- Regal Beloit
Corporation (NYSE: RBC) today announced that the Company has
acquired CMG Engineering Group Pty. Ltd. (CMG) headquartered in
Melbourne, Australia.
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 and add $.04 to diluted earnings per share in 2010.
The Company's guidance includes the estimated impact of
transaction costs, purchase accounting and intangible amortization
based on the preliminary purchase price allocation. Sales for CMG
in 2011 are expected to be approximately $128.0 to $135.5 million and the addition to
diluted earnings per share are expected to be $.12 to $.15 for the business, including the
dilutive impact of additional shares issued.
According to Henry W. Knueppel,
Chairman and CEO of Regal Beloit, "We are very excited to
announce the acquisition of CMG. The CMG business is a strong
and growing business across the Asia-Pacific Region, South Africa, and the Middle East. This acquisition further
expands the infrastructure necessary to significantly expand our
commercial efforts in these critical regions. The company has
an outstanding management team that has continuously grown the
business at a multiple of market growth rates. Given this
track record and the opportunities that RBC can bring to CMG, we
are very confident that we will see accelerated growth. 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. CMG is a perfect fit to
further complete this portion of our globalization
strategy."
Jack Gringlas, Group Managing
Director and Owner of CMG Engineering Group stated, "I am
confident that we have found the ideal acquirer for our business.
RBC will provide the best platform to secure the
future of the CMG business and its team of experienced and
dedicated staff. I will be continuing with CMG in the role of Group
Managing Director. I am extremely excited about the future of CMG
as a result of this sale."
About REGAL BELOIT CORPORATION:
Regal Beloit Corporation is a leading manufacturer of 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. Regal Beloit's common stock is a
component of the S&P Mid Cap 400 Index and the Russell 2000
Index.
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.
SOURCE Regal Beloit Corporation