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





No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Intelligent, efficient PLC programming: Cost-saving programming languages are available now; Automation system upgrades; Help from the cloud; Improving flow control; System integration tips
Smarter machines require smarter systems; Fixing PID, part 3; Process safety; Hardware and software integration; Legalities: Integrated lean project delivery
Choosing controllers: PLCs, PACs, IPCs, DCS? What's best for your application?; Wireless trends; Design, integration; Manufacturing Day; Product Exclusive
PLCs, robots, and the quest for a single controller; how OEE is key to automation solutions.
This article collection contains several articles on improving the use of PID.
Learn how Industry 4.0 adds supply chain efficiency, optimizes pricing, improves quality, and more.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
Cyber security cost-efficient for industrial control systems; Extracting full value from operational data; Managing cyber security risks
Drilling for Big Data: Managing the flow of information; Big data drilldown series: Challenge and opportunity; OT to IT: Creating a circle of improvement; Industry loses best workers, again

(copy 5)