BELOIT, Wis. - Regal-Beloit Corp. and the General Electric Co. announced that they have signed a definitive agreement for Regal-Beloit to acquire GE's commercial AC motor business. The transaction is expected to close in September, following the completion of customary regulatory clearance. GE's commercial AC motor business includes a full line of AC motors for pump, compressor, equipment, and commercial HVAC applications.

"We are extremely excited about the addition of the GE commercial AC motor business," said James L. Packard, chief executive officer and chairman of Regal-Beloit. "This acquisition significantly improves our position in the industrial motor channel through new products, applications, and distribution. The commercial AC business also provides us a significant manufacturing presence in Mexico and introduces us to outstanding technical resources in India. The business will add approximately $130 million in sales to the company and be financed through our existing credit facilities."

Lloyd Trotter, president and chief executive officer of GE Consumer & Industrial, said, "We're pleased that this transaction will align the commercial AC motors business with an organization that has both a core competency and a strategy for growth in the motors industry, and that will continue to deliver world-class technology for customers around the world."

Publication date: 09/13/2004