BELOIT, Wis., Sept. 4 /PRNewswire-FirstCall/ — Regal Beloit Corporation (NYSE:RBC) today announced that the Company has acquired Jakel Incorporated and completed the previously announced acquisition of the FASCO Residential/Commercial and FASCO Asia/Pacific operations from Tecumseh Products Company (NASDAQ:TECUA) (NASDAQ:TECUB) .
Both of the acquired businesses manufacture and market motors and blower systems for a variety of air moving applications including alternative fuels systems, water heaters, heating, ventilating and air conditioning (HVAC) systems and other commercial segments. The two independent businesses will be combined and operate as a single unit as part of the Company’s Electrical Segment.
The purchase price for the FASCO businesses was approximately $220 million. The purchase price for Jakel was not disclosed. The purchase prices for both businesses were paid in cash, but are subject to final working capital and other customary post close adjustments. The Company financed the purchases by utilizing the proceeds from the recently completed private debt placement.
Regal Beloit expects the combined businesses to add approximately $30 million and $85 million to sales for the third and fourth quarters of 2007, respectively. The acquired businesses are anticipated to add approximately $355 million in sales to 2008. It is expected that the combined businesses will be effectively neutral (-$.02 to +$.02) to diluted earnings per share for 2007 and add $.20 to $.25 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, “These businesses are a synergistic and natural fit with Regal Beloit’s current product offerings. Specifically, these acquisitions will allow us to expand our offering of energy efficient systems solutions to our customers, in addition to expanding our global manufacturing and commercial footprints, and furthering our ability to bring innovative products to our customers.”
The six facilities included with the acquisitions are FASCO’s manufacturing and distribution facilities in Eldon and Cassville, Missouri, Piedras Negras, Mexico, Bangkok, Thailand and Melbourne, Australia and Jakel’s manufacturing facility in Piedras Negras, Mexico.
Robert W. Baird & Co. served as the exclusive financial advisor to Regal Beloit for both transactions.
Regal Beloit will hold a conference call on September 04, 2007 at 10:00 am (CT), 11:00 am (ET) to discuss these acquisitions. Interested parties may participate in the call by dialing 800-288-8976. The replay, which will be available until September 14, may be accessed by calling 800-475-6701, pass code 886107.
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.
About Tecumseh Products Company
Tecumseh Products Company is a full-line independent global manufacturer of hermetic compressors for residential and commercial refrigerators, freezers, water coolers, dehumidifiers, window air conditioning units and residential and commercial central system air conditioners and heat pumps; and gasoline engines and power train for snow throwers, industrial and agricultural applications and recreational vehicles.
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
