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.
Copyright Business Wire 2014