BELOIT, Wis., Feb. 28, 2018 /PRNewswire/ — Regal Beloit Corporation (NYSE: RBC) today announced it has entered into an agreement to acquire Nicotra Gebhardt S.p.A. (NG) for approximately €125 million ($154 million).
“This will be a strategic acquisition for Regal as we continue to expand our energy efficiency system solutions for customers. Nicotra Gebhardt will enhance our portfolio, diversify our geographic exposure and strengthen our capability to deliver energy efficient solutions,” commented Chairman and CEO Mark Gliebe. “NG’s products will add to Regal’s growing lineup of energy efficient, air moving systems. NG will bring a very talented team who are experts in their light commercial air moving markets. We are excited to have NG as part of the Regal family, and we look forward to growing with them.”
NG is a leader in critical, energy-efficient systems for ventilation and air quality. The business manufactures, sells and services fans and blowers under the industry leading brand of Nicotra Gebhardt. With annual revenues of approximately $150 million, NG has over 750 employees around the world. Regal management estimates that the acquisition will be accretive in 2018 excluding purchase accounting adjustments and closing costs. The business of Industrie CBI S.p.A. was not included in the scope of this transaction.
The transaction, which is subject to customary closing conditions, is expected to close by the end of the second quarter of 2018. Shareholder approvals are not required to complete the transaction.
About the Company
Regal Beloit Corporation (NYSE: RBC) is a leading manufacturer of electric motors, electrical motion controls, power generation and power transmission products serving markets throughout the world. The company is comprised of three business segments: Commercial and Industrial Systems, Climate Solutions and Power Transmission Solutions. Regal is headquartered in Beloit, Wisconsin, and has manufacturing, sales and service facilities throughout the United States, Canada, Mexico, Europe and Asia. For more information, visit RegalBeloit.com.
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 release may be forward-looking statements. 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,” “expect,” “intend,” “estimate,” “forecast,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative of these terms or other similar words. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements due to a number of factors, including: uncertainties regarding our ability to execute our restructuring plans within expected costs and timing; increases in our overall debt levels as a result of the acquisition of the Power Transmission Solutions business of Emerson Electric Co. (“PTS”) or otherwise and our ability to repay principal and interest on our outstanding debt; actions taken by our competitors and our ability to effectively compete in the increasingly competitive global electric motor, drives and controls, power generation and mechanical motion control industries; our ability to develop new products based on technological innovation and marketplace acceptance of new and existing products; fluctuations in commodity prices and raw material costs; our dependence on significant customers; issues and costs arising from the integration of acquired companies and businesses including PTS and the timing and impact of purchase accounting adjustments; prolonged declines in oil and gas up stream capital spending; economic changes in global markets where we do business, such as reduced demand for the products we sell, currency exchange rates, inflation rates, interest rates, recession, government policies, including policy changes affecting taxation, trade, immigration and the like, and other external factors that we cannot control; product liability and other litigation, or claims by end users, government agencies or others that our products or our customers’ applications failed to perform as anticipated, particularly in high volume applications or where such failures are alleged to be the cause of property or casualty claims; unanticipated liabilities of acquired businesses; unanticipated costs or expenses we may incur related to product warranty issues; our dependence on key suppliers and the potential effects of supply disruptions; infringement of our intellectual property by third parties, challenges to our intellectual property, and claims of infringement by us of third party technologies; effect on earnings of any significant impairment of goodwill or intangible assets; cyclical downturns affecting the global market for capital goods; and 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 27, 2018 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 release are made only as of their respective dates, and we undertake no obligation to update these statements to reflect subsequent events or circumstances.
SOURCE Regal Beloit Corporation
CONTACT: Robert Cherry, VP – Business Development & Investor Relations, 608-361-7530, [email protected]