Beloit-Tightening

Regal to sell drives & systems business

Regal Beloit announced that it agreed to sell its highly engineered drives and control systems business (Regal Drive Technologies) for an undisclosed amount. The other party to the transaction is an associate of Sun Capital Partners, Inc.

Regal Drive Technologies is primarily engaged in manufacturing starters, engineered controls and drives. The business, employing roughly 450 people, is anticipated to generate revenues of $131 million.

In a news release Wednesday, the Beloit, Wisconsin-based company also said it expects the divested business to deliver an estimated 18 cents diluted earnings per share for the full year.

Terms of the sale weren’t disclosed as of Thursday morning.

Regal has gone through its share of mergers and acquisitions since its founding in 1955, and, like many electromechanical companies, even more so in the past decade-plus. In 2004, two acquisitions from General Electric effectively doubled the size of the company.

In its latest move in 2015, Regal acquired Power Transmission Solutions business (PTS) from Emerson Electric Co. for approximately $1.4 billion — $1.4 billion in cash plus $40 million of assumed liabilities. PTS manufactures, sells and services bearings, couplings, gearing, drive components, and conveyor systems under brands including Browning, Jaure, Kop-Flex, McGill, Morse, Rollway, Sealmaster and System Plast (featured in the video above as part of a cool collaboration with a craft brewery.

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Trackbacks/Pingbacks

  1. Top 10 Most Read EA blog posts of 2018 | Electrical Apparatus Magazine - January 10, 2019

    […] Beloit-Tightening. Debuting on December 6, 2018, this post about the sale of Regal Beloit’s drives and systems division also readers readers in the Direct & Current e-newsletter before publication in Electrical Apparatus magazine. […]

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