Regal Beloit acquires Milwaukee Gear Company

Regal Beloit Corp. announced it has acquired Milwaukee Gear Company, a manufacturer of highly engineered gearing components for oil and gas applications as well as a wide variety of other commercial and industrial applications.
The acquisition price was $80 million, subject to customary working capital adjustments, and was paid in cash.
Milwaukee Gear is expected to add approximately $60 million in revenue for the remainder of fiscal 2012. The acquisition is expected to add 3 to 6 cents to Regal Beloit’s diluted earnings per share in 2012, including the impact of purchase accounting adjustments and transaction costs, and 12 to 16 cents to diluted earnings per share in 2013. Results of operations will be reported in the Mechanical segment.
Milwaukee Gear operates a plant in Milwaukee at 150 North Port Washington Road.
"Milwaukee Gear is a very well-managed business with an excellent reputation resulting from its application engineering excellence and its high precision manufacturing processes," said Mark Gliebe, chairman and chief executive officer of Regal Beloit. "The business will be a great fit within our Mechanical segment, allowing us to offer customers a larger range of gearing solutions while diversifying our end markets.”
Additional details of the transaction will be provided during Regal Beloit’s previously announced fourth quarter and fiscal year earnings conference call on Tuesday Feb. 7 at 9 a.m. Central time.