July 12, 2007: Regal Beloit to Acquire Motor and Blower Business From Tecumseh Products
July 12, 2007
BELOIT, Wis. - Regal Beloit Corp. announced that it has signed a definitive agreement with Tecumseh Products Co. under which Regal Beloit will acquire the assets of the Fasco Residential/Commercial operations and the stock of the Fasco Asia/Pacific operations of Tecumseh (Fasco). Tecumseh's Fasco Automotive/Specialty business is not part of this transaction. The Fasco businesses that Regal Beloit is acquiring manufacture and market motors and blower systems for air moving applications including alternative fuels systems, water heaters, and HVAC systems. Regal Beloit expects the acquired businesses to add approximately $290 million in sales in 2008.
The transaction is valued at approximately $220 million and is expected to close in the third calendar quarter, subject to the satisfaction of customary conditions for closing and the receipt of required regulatory approvals. Regal Beloit expects the acquisition to add approximately $.10 to $.15 to 2008 diluted earnings per share. The purchase price will be paid in cash.
Henry W. Knueppel, chairman and CEO of Regal Beloit, commented, "Fasco is a great business with a long history of product and manufacturing excellence. We are very excited about the people, facilities, and technology that are the foundation of these acquired businesses. This acquisition is consistent with our strategy to expand our end markets and integrated product solutions. We are particularly pleased that this acquisition would allow us to offer our customers a range of complete motor and blower system solutions. Additionally, the acquisition would continue the expansion of our global manufacturing and commercial footprints and expand our reach further into Asia including the Australian market."
Included in the acquisition are manufacturing and distribution facilities in Eldon, Mo.; Cassville, Mo.; Piedras Negras, Mexico; Bangkok, Thailand; and Melbourne, Australia. The Fasco Automotive and Specialty business will remain with Tecumseh but will not retain the Fasco brand.
For more information, visit www.regal-beloit.com.
Publication date: 07/09/2007