Emerson Agrees to Sell Power Transmission Solutions Business to Regal Beloit Corporation
15 Dezember 2014 - 1:00PM
Business Wire
Emerson (NYSE: EMR) today announced that it has agreed to sell
its Power Transmission Solutions business unit to Regal Beloit
Corporation (NYSE: RBC). The transaction is valued at $1.44
billion, representing cash proceeds of $1.4 billion plus assumption
of certain postretirement liabilities, and is expected to close in
the first calendar quarter of 2015, subject to regulatory
approvals. Proceeds will be used for incremental share repurchase
in fiscal 2015.
“While the Power Transmission Solutions business no longer
aligns with the strategic direction of our portfolio, it is a
strong business with an outstanding management team that has
created significant value while part of Emerson,” said Chairman and
Chief Executive Officer David N. Farr. “This transaction allows us
to better focus on our value creation priorities and provides Regal
Beloit with a unique opportunity to strengthen and grow its
mechanical power transmission segment. I am grateful to the
employees of Power Transmission Solutions for their commitment to
growth and operational excellence throughout our long partnership.
We will work closely with Regal Beloit to ensure a smooth
transition for customers and employees.”
Currently a part of Emerson’s Industrial Automation segment,
Power Transmission Solutions had 2014 revenue of more than $600
million, is based in Florence, Kentucky, and employs over 3,000
people across the globe. The business designs and manufacturers
market-leading couplings, bearings, conveying components, gearing,
drive components, and supporting services and solutions, with
brands including Browning, Jaure, Kop-Flex, McGill, Morse, Rollway,
Sealmaster, and System Plast.
About Emerson
Emerson (NYSE: EMR), based in St. Louis, Missouri (USA), is a
global leader in bringing technology and engineering together to
provide innovative solutions for customers in industrial,
commercial, and consumer markets around the world. The company is
comprised of five business segments: Process Management,
Industrial Automation, Network Power, Climate Technologies, and
Commercial & Residential Solutions. Sales in fiscal 2014 were
$24.5 billion. For more information, visit Emerson.com.
About Regal Beloit Corporation
Regal Beloit Corporation is a leading manufacturer of electric
motors, mechanical and electrical motion controls 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.
For EmersonMark Polzin,
314-982-1758mark.polzin@fleishman.com
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