Regal Beloit Acquires Rotor B.V.

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Sep 01, 2010, 06:58 ET

BELOIT, Wis., Sept. 1 /PRNewswire-FirstCall/ -- Regal Beloit Corporation (NYSE: RBC) today announced that it has acquired Rotor B.V. headquartered in Eibergen, the Netherlands.

Rotor sells standard and special electric motors to a variety of industries including the marine industry, ship building and offshore oil and gas. In addition to the Netherlands, Rotor also sells throughout Europe, the UK and Japan. The management of Rotor will continue to lead the company following the acquisition.

For the remainder of 2010, the business is expected to add approximately $10 million to sales and a de minimis amount to diluted earnings per share after including the estimated impact of transaction costs, purchase accounting and intangible amortization based on the preliminary purchase price allocation. Sales for Rotor in 2011 are expected to be approximately $27 to $30 million and the addition to diluted earnings per share is expected to be $.04 to $.06 for the business.

According to Henry W. Knueppel, Chairman and CEO of Regal Beloit, "We are very excited to announce the acquisition of Rotor. The company has an outstanding management team that has grown the business in Europe and beyond. The addition of Rotor strengthens our European commercial position and adds vertical market segment strengths. The Rotor addition represents continued progress on our strategy of geographic and market segment diversification."

Herbert Weekhout and Mario Pistone, managing directors and owners of Rotor stated, "We are excited to join Regal Beloit and are confident that, following this acquisition, we will become an even stronger company, benefiting our customers and stakeholders."

About REGAL BELOIT CORPORATION:

Regal Beloit Corporation is a leading manufacturer of mechanical and electrical motion control 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.

CAUTIONARY STATEMENT

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. We cannot guarantee the accuracy of the forward-looking statements, and you should be aware that results and events could differ materially and adversely from those contained in the forward-looking statements due to a number of factors, including: unexpected issues and costs arising from the closing of the transaction and the integration of acquired companies and businesses and marketplace acceptance of these and other recent acquisitions, including the loss of, or a decline in business from, any significant customers of Regal Beloit or the acquired businesses. 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 press release are made only as of the date of this release, and we undertake no obligation to update these statements to reflect subsequent events or circumstances.

Website: www.regalbeloit.com

SOURCE Regal Beloit Corporation