Regal-Beloit buys GE’s motor, capacitor operations for HVAC/refrigeration
Beloit, WI—Regal-Beloit Corp. recently bought General Electric Co.'s motors and capacitors operations for heating, ventilation, and air conditioning (HVAC)/refrigeration from GE’s Consumer & Industrial division.
Beloit, WI— Regal-Beloit Corp. recently bought General Electric Co.'s motors and capacitors operations for heating, ventilation, and air conditioning (HVAC)/refrigeration from GE’s Consumer & Industrial division. These operations include a full line of motors for residential HVAC applications and capacitors for HVAC and high-intensity lighting applications.
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The company estimates that future tax benefits related to the deductibility of goodwill and intangible asset amortization to have an estimated present value of $45-50 million. Regal-Beloit expects the acquisition to add sales of approximately $500 million in 2005 and, including an estimated $0.20 per share of one-time costs and the impact of related financing activities, to add $0.32-0.34 to 2005’s diluted earnings per share.
Regal-Beloit reports that buying GE’s motors and capacitors operations will give it a leading market position for electric motors used in central heating and air conditioning systems, and help it expansion of its customer base to include major HVAC OEMs. The purchase also gives Regal-Beloit patented variable speed motor technology, expands its global manufacturing capabilities, and allows it to use the trade name 'GE HVAC Motors by Regal-Beloit' for up to 15 years.
'This is a defining acquisition. We believe this acquisition, coupled with the acquisition of the Commercial AC Motor business we completed in August, makes us the largest commercial/industrial motor producer in the U.S., as well as the leader in HVAC motors,” says James Packard, Regal-Beloit’s chairman and CEO. “Equally important, these acquisitions bring impressive technology and low-cost manufacturing resources to our company. We’re excited about the potential for these businesses and the outstanding employees that will be joining our Company. We’re particularly pleased to announce that Mark Gliebe, formerly general manager of GE Motors & Controls, will also be joining Regal-Beloit.'
The HVAC/refrigeration motors and capacitors operations are based in Fort Wayne, IN. The sale also included motor manufacturing facilities in Springfield, MO; Reynosa, Mexico; and Faridabad, India; as well as capacitor manufacturing facility in Juarez, Mexico. The business also has technology resources located in Hyderabad, India.
Control Engineering Daily News Desk
Jim Montague, news editor