Baldor buys Rockwell motion unit for $1.8 billion, stock

Baldor Electric Co. signed a definitive agreement to acquire the Reliance Electric Co. and certain of its affiliated companies from Rockwell Automation for $1.8 billion. The Rockwell Power Systems business, previously reported up for sale, markets products under the Reliance Electric and Dodge brand names.

12/01/2006


Baldor Electric Co. signed a definitive agreement to acquire the Reliance Electric Co. and certain of its affiliated companies from Rockwell Automation for $1.8 billion. The Rockwell Power Systems business, previously reported up for sale, markets products under the Reliance Electric and Dodge brand names. The brands complement Baldor's business in industrial electric motors, drives and generators, and the move gives Rockwell Automation stock in Baldor. Rockwell purchased Reliance in 1994 for $1.6 billion.

Baldor Electric Co. manufactures industrial electric motors, drives and generators, is headquartered in Fort Smith, AR, and had 2005 revenues of $721 million. Baldor has approximately 3,900 employees worldwide, 14 manufacturing facilities, and claims the highest customer preference in the industry. When completed, the transaction advances Baldor's capabilities among North American manufacturers of industrial electric motors and power transmission products.

Baldor will purchase 100% equity interest in the Power Systems business for $1.8 billion, comprised of $1.75 billion in cash and approximately 1.6 million shares of Baldor common stock (market value of $50 million). The parties expect to complete the transaction (subject to customary closing conditions and necessary regulatory approvals) during first-quarter 2007.

“The Reliance and Dodge businesses are a great fit with our existing businesses,” said John McFarland, chairman and chief executive officer of Baldor. “The Power Systems business will complement and add strength to Baldor's product line.”

The transaction provides a number of benefits and opportunities for Baldor customers, Baldor shareholders, and employees of each company. It extends the Baldor product line into power transmission products and larger motors; broadens Baldor products and services and investor interest; increases the combined manufacturing capability and flexibility; provides strong opportunities for synergies and cost savings in the combined businesses; provides a manufacturing base in China for Asian markets; and adds approximately $1 billion dollars in sales with margins higher than Baldor's existing business.

www.baldor.com

www.rockwellautomation.com





Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
Boiler basics; 2017 Product of the Year winners; Manufacturing facilities Q&A; Building integration; Piping and pumping systems
2017 MEP Giants; Mergers and acquisitions report; ASHRAE 62.1; LEED v4 updates and tips; Understanding overcurrent protection
Integrating electrical and HVAC for energy efficiency; Mixed-use buildings; ASHRAE 90.4; Wireless fire alarms assessment and challenges
Power system design for high-performance buildings; mitigating arc flash hazards
Transformers; Electrical system design; Selecting and sizing transformers; Grounded and ungrounded system design, Paralleling generator systems
Commissioning electrical systems; Designing emergency and standby generator systems; VFDs in high-performance buildings
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me