Sept. 12, 2007: Regal Beloit Acquires Jakel and Completes Fasco Acquisition
September 12, 2007
BELOIT, Wis. - Regal Beloit Corp. announced that the company has acquired Jakel Inc. and completed the previously announced acquisition of the Fasco Residential/Commercial and Fasco Asia/Pacific operations from Tecumseh Products Co.
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, HVAC systems, and others. 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 a 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, Mo., Piedras Negras, Mexico, Bangkok, Thailand, and Melbourne, Australia, and Jakel's manufacturing facility in Piedras Negras, Mexico.
For more information, visit www.regal-beloit.com.
Publication date: 09/10/2007