Regal Rexnord Corporation Closes The Sale Of Its Industrial Motors & Generators Business To WEG
MILWAUKEE, April 30, 2024 /PRNewswire/ -- Regal Rexnord Corporation (NYSE: RRX) announced today that it closed the previously announced sale of its Industrial Motors and Generators business that comprises the substantial majority of its Industrial Systems segment to certain subsidiaries of WEG S.A. (B3: WEGE3 / OTC: WEGZY).
The Company closed the transaction for total consideration of US $400 million, approximately 17% of which is deferred and will be paid upon the completion of the China Business transfer.[1] The total consideration remains subject to taxes, transaction expenses, working capital adjustments and customary post-closing adjustments. The Company anticipates that aggregate net proceeds will approximate US $355 million.
As previously disclosed, the Company intends to use the aggregate net proceeds from the transaction to reduce its debt, which in combination with deploying the majority of its forecasted 2024 free cash flow to debt reduction, should enable the Company to repay most of its variable interest rate debt by the end of 2024.
About Regal Rexnord
Regal Rexnord's 30,000 associates around the world help create a better tomorrow by providing sustainable solutions that power, transmit and control motion. The Company's electric motors and air moving subsystems provide the power to create motion. A portfolio of highly engineered power transmission components and subsystems efficiently transmits motion to power industrial applications. The Company's automation offering, comprised of controls, actuators, drives, and small precision motors, controls motion in applications ranging from factory automation to precision control in surgical tools.
The Company's end markets benefit from meaningful secular demand tailwinds, and include factory automation, food & beverage, aerospace, medical, data center, warehouse, alternative energy, residential and commercial buildings, general industrial, construction, metals and mining, and agriculture.
Regal Rexnord is comprised of three operating segments: Industrial Powertrain Solutions, Power Efficiency Solutions, and Automation & Motion Control. Regal Rexnord is headquartered in Milwaukee, Wisconsin and has manufacturing, sales and service facilities worldwide. For more information, including a copy of our Sustainability Report, visit RegalRexnord.com.
Forward Looking Statements
All statements in this communication, other than those relating to historical facts, are "forward-looking statements." Forward-looking statements can generally be identified by their use of terms such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "may," "will," "project," "forecast," "would," "could," "should," and similar expressions, including references to assumptions. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements. Forward-looking statements include, but are not limited to, statements about future strategic plans and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements in this communication include, without limitation, the possibility that the completion of the deferred transfer of the China Business may not be satisfied on the anticipated terms or timeline, the Company's ability to realize the benefits, including debt reduction, anticipated from the sale of the Industrial Motors and Generators business, and other factors that can be found in our filings with the Securities and Exchange Commission, including our most recent periodic reports filed on Form 10-K and Form 10-Q, which are available on our Investor Relations website. Forward-looking statements are given only as of the date of this communication and we disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
____________________________
1 Due to administrative requirements, the transfer of the Chinese subsidiaries of the Industrial Motors and Generators business (the "China Business") remains in progress and is expected to occur following the completion of certain customary local filings and transfer documentation. The Company expects the deferred transfer of the China Business will occur in mid second quarter of 2024, at which time it anticipates it will receive the portion of the purchase price allocated to the China Business.
View original content:https://www.prnewswire.com/news-releases/regal-rexnord-corporation-closes-the-sale-of-its-industrial-motors--generators-business-to-weg-302132091.html
SOURCE Regal Rexnord Corporation
