BELOIT, Wis., Nov. 2 /PRNewswire-FirstCall/ — Regal Beloit Corporation (NYSE:RBC) today announced that the Company has acquired Alstom’s motors and fans business in India. The business is located in Kolkata, India and manufactures and markets a full range of low and medium voltage industrial motors and fans for the industrial and process markets in India. Alstom is noted for high quality process duty motors with a full range from 1 to 3500 hp. The business will be reported as part of the Company’s Electrical Segment. Terms of the deal were not disclosed. The purchase price was paid in cash.
Regal Beloit expects the business to add approximately $10.0 million and $80.0 million to sales for the fourth quarter of 2007 and full year 2008, respectively. It is expected that the acquired business will be effectively neutral to diluted earnings per share for 2007 and add between $.06 and $.08 to diluted earnings per share in 2008, including planned synergies. The Company’s estimates include the impact of purchase accounting and estimates for the allocation of the purchase price.
According to Henry W. Knueppel, Chairman and CEO of Regal Beloit, “The acquisition of the Alstom India industrial motor and fan business is another significant step in the execution of our Globalization initiative. We intend to continue to improve our global commercial presence to better serve our customers and participate in high growth geographies. As well, we intend to maximize the capabilities of our manufacturing footprint to benefit all RBC businesses.”
About REGAL BELOIT CORPORATION:
Regal Beloit Corporation is a leading manufacturer and marketer of branded 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.
CAUTIONARY STATEMENT
This news release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our management’s judgment regarding future events. In many cases, you can identify forward-looking statements by terminology such as “may,” “will,” “plan,” “expect,” “anticipate,” “estimate,” “believe,” or “continue” or the negative of these terms or other similar words. Actual results and events could differ materially and adversely from those contained in the forward-looking statements due to a number of factors, including:
— unanticipated fluctuations in commodity prices and raw material costs;
— cyclical downturns affecting the global market for capital goods;
— economic changes in global markets where we do business, such as
currency exchange rates, inflation rates, interest rates, recession,
foreign government policies and other external factors that we cannot
control;
— unexpected issues and costs arising from the integration of acquired
companies and businesses;
— actions taken by our competitors;
— unanticipated costs associated with litigation matters;
— marketplace acceptance of new and existing products including the loss
of, or a decline in business from, any significant customers;
— the impact of capital market transactions that we may effect;
— difficulties in staffing and managing foreign operations;
— the availability and effectiveness of our information technology
systems;
— other risks and uncertainties including but not limited to those
described in Item 1A-Risk Factors of the Company’s Annual Report on
Form 10-K filed on February 28, 2007 and from time to time in our
reports filed with U.S. Securities and Exchange Commission.
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 news release are made only as of their respective dates, and we undertake no obligation to update these statements to reflect subsequent events or circumstances. See also Item 1A – Risk Factors in the Company’s Annual Report on Form 10-K filed on February 28, 2007.
First Call Analyst:
FCMN Contact:
Source: Regal Beloit Corporation
