Regal Beloit Announces Acquisition of Milwaukee Gear Company
BELOIT, Wis., Feb. 3, 2012 /PRNewswire/ -- Regal Beloit Corporation (NYSE: RBC) today announced that it has acquired Milwaukee Gear Company, a Wisconsin-based leading manufacturer of highly engineered gearing components for oil and gas applications as well as a wide variety of other commercial and industrial applications.
The acquisition price was $80.0 million, subject to customary working capital adjustments, and was paid in cash. Milwaukee Gear is expected to add approximately $60.0 million in revenue for the remainder of fiscal 2012. The acquisition is expected to add $0.03 to $0.06 to diluted earnings per share in 2012, including the impact of purchase accounting adjustments and transaction costs, and $0.12 to $0.16 to diluted earnings per share in 2013. Results of operations will be reported in the Mechanical segment.
"Milwaukee Gear is a very well-managed business with an excellent reputation resulting from its application engineering excellence and its high precision manufacturing processes," commented Mr. Mark Gliebe, Chairman and Chief Executive Officer of Regal Beloit Corporation. "The business will be a great fit within our Mechanical segment, allowing us to offer customers a larger range of gearing solutions while diversifying our end markets," continued Mr. Gliebe.
Additional details of the transaction will be provided during the previously announced fourth quarter and fiscal year earnings conference call on Tuesday February 7, 2012 at 9:00 a.m. Central time (10:00 a.m. Eastern time). To listen to the call and view the presentation slides via the internet, please go http://www.regalbeloit.com/ or at: http://www.videonewswire.com/event.asp?id=84548. Individuals who would like to participate by phone should dial 866-524-3160, referencing Regal Beloit. International callers should dial 412-317-6760, referencing Regal Beloit.
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.
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: issues and costs arising from the integration of acquired companies and businesses such as Milwaukee Gear Company, including the timing and impact of purchase accounting adjustments; increases in our overall debt levels as a result of acquisitions or otherwise and our ability to repay principal and interest on our outstanding debt; 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; 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 March 2, 2011 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
SOURCE Regal Beloit Corporation