BELOIT, Wis., Dec. 15, 2014 /PRNewswire/ -- Regal Beloit
Corporation (NYSE: RBC) today announced it has entered into a
definitive agreement to acquire the Power Transmission Solutions
business ("PTS") of Emerson Electric Co. (NYSE:EMR) for
approximately $1.4 billion comprised
of $1.4 billion in cash plus
$40 million of assumed
liabilities.
"This acquisition will be transformational for Regal. PTS
will broaden our portfolio, diversify our end market exposure and
strengthen our global footprint," commented 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 is a global leader in highly engineered power transmission
products and solutions. The business manufactures, sells and
services bearings, couplings, gearing, drive components, and
conveyer systems under industry leading 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.
Regal management estimates 2015 accretion between $0.40 and $0.60 per share including purchase
accounting adjustments and closing costs, and 2016 accretion
between $0.95 and $1.15 per
share. Transaction synergies are estimated to be $30 million within a four year period.
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.
Robert W. Baird & Co. served as the exclusive financial
advisor to Regal. White & Case LLP served as the legal
advisor to Regal.
Investor Call
Regal will hold a conference call at 9:00
AM CST (10:00 AM EST) on
Monday, December 15, 2014.
Individuals who would like to participate by phone should dial
888-317-6003 and enter 5621628 when prompted. International
callers should dial 412-317-6061 and enter 5621628 when
prompted. To view the presentation during the call, please
follow this link to Regal's Investors page:
http://investors.regalbeloit.com/phoenix.zhtml?c=116222&p=irol-presentations.
To listen to the live audio and view the presentation via the
internet, please go to:
http://www.videonewswire.com/event.asp?id=101241.
A telephone replay of the call will be available through
March 15, 2015, at 877-344-7529,
conference ID 10057566. International callers should call
412-317-0088 using the same conference ID. A webcast replay
will be available until March 15,
2015, and can be accessed at
http://investors.regalbeloit.com/phoenix.zhtml?c=116222&p=irol-calendarPast
or at http://www.videonewswire.com/event.asp?id=101241.
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.
In many cases, you can identify forward-looking statements by
terminology such as "may," "will," "plan," "expect,"
"anticipate," "estimate," "believe," or "continue" or the negative
of these terms or other similar words. Actual results and
events could differ materially and adversely from those contained
in the forward-looking statements due to a number of factors,
including: uncertainties regarding our ability to execute our
restructuring plans within expected costs and timing; increases in
our overall debt levels as a result of the PTS acquisition or
otherwise and our ability to repay principal and interest on our
outstanding debt; actions taken by our competitors and our ability
to effectively compete in the increasingly competitive global
electric motor, power generation and mechanical motion control
industries; our ability to develop new products based on
technological innovation and the marketplace acceptance of new and
existing products; fluctuations in commodity prices and raw
material costs; our dependence on significant customers; issues and
costs arising from the integration of acquired companies and
businesses such as the PTS acquisition, including the ability to
realize anticipated synergies and the timing and impact of purchase
accounting adjustments; unanticipated costs or expenses we may
incur related to product warranty issues; our dependence on key
suppliers and the potential effects of supply disruptions;
infringement of our intellectual property by third parties,
challenges to our intellectual property, and claims of infringement
by us of third party technologies; product liability and other
litigation, or the failure of our products to perform as
anticipated, particularly in high volume applications; economic
changes in global markets where we do business, such as reduced
demand for the products we sell, currency exchange rates, inflation
rates, interest rates, recession, foreign government policies and
other external factors that we cannot control; unanticipated
liabilities of acquired businesses; cyclical downturns affecting
the global market for capital goods; difficulties associated with
managing foreign operations; and other risks and uncertainties
including but not limited to those described in Item 1A-Risk
Factors of the Company's Annual Report on Form 10-K filed on
February 26, 2014 and from time
to time in our reports filed with U.S. Securities and Exchange
Commission. 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 presentation are made only as of their respective
dates, and we undertake no obligation to update these statements to
reflect subsequent events or circumstances.
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.
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SOURCE Regal Beloit Corporation