Regal-Beloit Corp. has bought the power transmissions business from Emerson Electric Co. for $1.44 billion, adding products and clients to their company.
Regal-Beloit currently have a large product portfolio with a range of motors, generators, gear reducers and electronic switchgear now be able to add gearing, couplings and bearings to their list. Within the next four years, the acquisition is set to generate $30 million in annual savings according to Regal-Beloit.
“This acquisition will be transformational for Regal, it will broaden our portfolio and diversify our end market exposure and strengthen our global footprint.” Chief Executive Officer, Mark Gliebe.
In June, Emerson announced they were considering different options for the electric unit and that there would be a decision made by the end of 2014. According to Emerson, the business was no longer included in their priorities. They plan to use the funds from the sale to purchase back shares in fiscal 2015, after selling assets worth a total $554 million this year. The power transmissions unit, this year, experienced revenues of over $600 million.