Featuring M&A news on Regal Beloit, Facility Services Group, Rockwell Automation, Magnetek and Bucyrus
Regal Beloit acquires Chinese firms
Regal Beloit Corp. has acquired Joyce Court Holdings Ltd. and Grand Delight Investments Ltd., sole shareholders of Wuxi Hwada Motor Co. and Wuxi New Hwada Motor Co. in Wuxi, China. Hwada is a leading designer and manufacturer of Integral IEC and NEMA electric motors, which are used in various industrial applications such as compressor, pump, paper and steel processing, and power plants. The purchase price was $27.6 million in cash and the assumption of approximately $8 million in net liabilities. Additionally, under the terms of the transaction, the company will pay to the seller up to $8.5 million received by the company in the future upon the sale of certain real property rights owned by Hwada. Approximately 50 percent of Hwada’s product sales are in the Chinese industrial markets. The other half are exported to Europe, the United States and Southeast Asia. The business will be reported as part Regal Beloit’s electrical segment. The acquired businesses are expected to add approximately $75 million to $80 million in sales for the Beloit-based company. Henry Knueppel, chairman and chief executive officer of Regal Beloit, said, "We are very excited to announce the acquisition of Hwada. This is another significant, strategic-focused expansion of our industrial business in high growth markets. The acquisition represents our first wholly owned industrial motor facility in China. Hwada is currently one of the top industrial motor companies in China. It enjoys a reputation of product excellence and rapid growth and comes with an excellent management team."
Growing Pewaukee company acquires Milwaukee painting firm
Pewaukee-based Facility Services Group Inc. has acquired the assets of Performance Painting LLC, more than doubling its current commercial/industrial painting capabilities in southeastern Wisconsin. Performance Painting’s Milwaukee office and warehouse at 223 S. 2nd St. will remain open, but will become a Facility Services Group office. Six Performance Painting employees will be retained by the merged company. Facility Services Group acquired Performance Painting from Michael Wolters. Financial terms of the transaction were not disclosed. "The requests for painting and related services from building owners and property management companies has grown significantly," said Dean Puccetti, president of Facility Services Group. "Expanding our commercial painting capabilities responds directly to our customers’ desire to improve and maintain their properties.” Facility Services Group provides building improvement solutions to commercial and industrial facilities throughout southeastern Wisconsin with expertise in interior and exterior renovations. Wendee Puccetti of Facility Services Group said, "We brought six employees into Facility Services Group and did not eliminate any. In fact, we plan to add more as we grow this division."
Rockwell to acquire California software company
Milwaukee-based Rockwell Automation Inc. has reached a definitive agreement to acquire Incuity Software, Inc., a privately held company that is a leading supplier of Enterprise Manufacturing Intelligence (EMI) software. Headquartered in Mission Viejo, Calif., Incuity manufactures software that provides real-time intelligence for business decision support to improve operations and reduce production waste by providing valuable management insight into a company’s operations. Financial terms of the transaction were not disclosed.
"This acquisition is a key milestone in the continued expansion of our FactoryTalk software suite," said Kevin Roach, vice president of Rockwell Software. "Their newest software, IncuityEMI 2.6, easily integrates many disparate information sources from production operations and other enterprise systems. IncuityEMI 2.6 delivers unique insights into enterprise performance and key operational metrics, and empowers personnel to drill down and analyze the root causes associated with manufacturing problems. Combining Incuity’s capabilities with the FactoryTalk integrated production management and performance suite will create tremendous value for our customers."
Doug Lawson, CEO, Incuity Software, said: "Getting enterprise manufacturing information into the hands of decision-makers now is a vital business need. IncuityEMI is the most innovative and exciting application in the market for this purpose. This acquisition combines our business with the resources, technology, customer base and global delivery capabilities of Rockwell Automation and will be good for our customers. Rockwell Automation is the perfect partner for Incuity."
Magnetek to sell off division
Magnetek Inc. plans to sell its Telecom Power Systems business, which is based in Menomonee Falls. The division, which generated approximately $16 million of Magnetek’s total sales of $103.8 million in fiscal 2007, employs about 25 people in Menomonee Falls and another five people in a sales office in Dallas, Texas. Magnetek said it will focus its efforts on enhancing shareholder value through investment in and growth of its core power control and systems businesses, as well as strategic acquisitions in its product lines serving the material handling, elevator, and alternative energy industries. "Magnetek’s strategy is to focus on our core businesses where we have growth opportunities and a sustainable competitive advantage," said Magnetek chief executive officer David Reiland. As previously announced, Magnetek recently acquired the assets of Enrange LLC of Canonsburg, Pa., a wireless control manufacturer providing radio remote controls for the material handling, industrial, hydraulic and rock mining industries. Beginning with the fourth fiscal quarter, Magnetk will account for the Telecom Power Systems business as a discontinued operation.
Bucyrus pursues joint venture in China
South Milwaukee-based Bucyrus International Inc. has entered into a preliminary framework agreement with Huainan Mining Industry (Group) Co. Ltd. to seek to establish a joint venture in the Huainan mining area of the Anhui Province in the People’s Republic of China. The preliminary agreement contemplates Bucyrus owning a controlling interest in a joint venture that would involve the building of a new state-of-the-art manufacturing facility in the Huainan mining area of China that would initially manufacture belt systems and armored face conveyors for resale on a preferential basis to Huainan Mining, as well as to other third parties in China and elsewhere.
It is possible that the joint venture could manufacture and sell additional underground mining equipment as well. Both Bucyrus and Huainan Mining would contribute an undisclosed amount of cash, as well as other assets and personnel, to the joint venture. Bucyrus president and chief executive officer Tim Sullivan said, "The joint venture which we hope will result from this preliminary framework agreement will benefit both Bucyrus and Huainan Mining. The first step in a resulting joint venture will extend our market coverage and provide us with a low cost manufacturing base in China. Huainan Mining will benefit from the higher technology of our products, and the region will gain through the development of a high technology manufacturing base in Anhui Province. There is also the future potential for exports using our international sales network."
