Regal Beloit Corporation RBC announced Monday that it agreed to acquire the Power Transmission Solutions business ("PTS") of Emerson Electric Co. EMR for approximately $1.4 billion comprised of $1.4 billion in cash plus $40 million of assumed liabilities.
According to the press release, PTS has annual revenues of approximately $600 million and 3,000 employees around the world. PTS will become part of Regal's newly-defined Power Transmission segment.
"This acquisition will be transformational for Regal. PTS will broaden our portfolio, diversify our end market exposure and strengthen our global footprint," commented Chairman and CEO Mark Gliebe.
Regal management estimates 2015 accretion between $0.40 and $0.60 per share including purchase accounting adjustments and closing costs, and 2016 accretion between $0.95 and $1.15 per share. Transaction synergies are estimated to be $30 million within a four year period.
Regal Beloit shares surged 9.68 percent to $75.00 in the pre-market following the news.
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