Regal Beloit to acquire subsidiary of A.O. Smith; Journal Communications to sell Michigan printing business
Regal Beloit to acquire subsidiary of A.O. Smith
Regal Beloit Corp. has entered into an agreement to acquire 100 percent of the stock and assets of the Electrical Products Company (EPC) from Milwaukee-based A.O. Smith Corp.
EPC manufactures and sells motors for hermetic, pump, distribution, HVAC and general industrial applications.
Total consideration for the transaction is approximately $875 million, including $700 million of cash and $175 million in shares of Regal Beloit common stock.
Regal Beloit expects the acquisition to add annual sales of over $700 million in the first full year following the acquisition and to be accretive in the first full year following the acquisition, excluding one-time transaction-related expenses and purchase accounting adjustments. The majority of the expenses will be incurred in the first quarter following the close of the transaction. Closing will be subject to customary regulatory approvals.
EPC is based in Tipp City, Ohio. Operations include motor manufacturing facilities in the United States, Mexico, China, and the United Kingdom.
The transaction represents the seventh acquisition for Regal Beloit in 2010, all of which are consistent with the company’s stated objectives of acquiring businesses that include energy efficiency technology, strengthen the geographic footprint and offer a synergistic fit.
Henry Knueppel, chief executive officer and chairman of the Beloit-based firm, said, "This is a defining acquisition for Regal Beloit. We believe that this acquisition achieves all three criteria of our acquisition strategy. Equally important, we are looking forward to welcoming the outstanding employees of EPC to our company. EPC adds exciting new technologies, enhances geographic presence, and drives significant synergies. Furthermore, the transaction is expected to be accretive, excluding non-recurring items and purchase accounting adjustments, the majority of which are expected to occur in the first quarter following the close of the transaction. This transaction provides us with a more complete product and technology portfolio, which will allow us to add value for our customers."
Paul Jones, CEO and chairman of A.O. Smith, said, "Regal Beloit will be a tremendous steward for our business and we believe that Regal Beloit is a good cultural fit for the EPC organization. This transaction will benefit all of our stakeholders."
Journal Communications to sell Michigan printing business
Milwaukee-based Journal Communications, Inc. has reached terms to sell IPC Print Services, a Michigan-based printing company that it held, to Walsworth Publishing Co., based in Marceline, Missouri.
Terms of the acquisition were not disclosed.
“Finding a quality buyer for IPC allows us to continue to focus on our core local market media businesses,” said Steven J. Smith, chairman and chief executive officer of Journal Communications. “We appreciate the contributions of IPC’s many dedicated employees. We are excited about their future business opportunities with a fine company like Walsworth Publishing.”
IPC Print Services specializes in print manufacturing, electronic publishing, data management, assembly, distribution and fulfillment of scientific, medical and technical journals. Journal Communications has owned IPC since 1992.
Founded in 1937, Walsworth Publishing Company is among the 50 largest printing companies in the U.S. and top 10 book printers. The company is also the only American- and family-owned publisher of yearbooks.
