Milwaukee-based Rexnord Corp. and Beloit-based Regal Beloit Corp. plan to complete the $3.7 billion merger of Rexnord’s process and motion control business into Regal Beloit on Oct. 4, the companies announced Monday.
The deal, originally announced in February, calls for Rexnord’s PMC business to be spun off and then merged into Regal Beloit. Rexnord’s shareholders will own a majority of Regal Beloit after the deal because the two companies share a number of overlapping shareholders. The companies received a private ruling from the IRS in August to be tax-free for Rexnord because of those overlapping shareholders.
Once the deal closes, Regal will change its name to Regal Rexnord Corp. and its stock ticker will change to RRX. Rexnord will change its name to Zurn Water Solutions and will trade under the ticker ZWS.
Shareholders from the two companies approved the deal at meetings held earlier this month.
The deal will mark a sharp change in focus for Rexnord. The PMC business has accounted for nearly 60% of sales this year, a figure that has been even higher in prior years. The business makes highly-engineered mechanical components used in a number of industries, including food and beverage, aerospace, mining, power generation, industrial and automation applications.
The remaining company going forward under the Zurn name makes professional grade water control, safety, distribution and drainage products along with finish plumbing and site works products primarily for nonresidential buildings.