Regal Beloit Corporation has acquired the Power Transmission Solutions business (“PTS”) of Emerson Electric for approximately $1.4 billion.
“This acquisition will be transformational for Regal. PTS will broaden our portfolio, diversify our end market exposure and strengthen our global footprint,” said 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 conveyor 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 more than 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, which has a proven track record of success in building and growing businesses,” said Emerson chairman and CEO 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.
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