Baldor Electric Co. (Fort Smith, Ark.) has signed a definitive agreement to acquire the Reliance Electric Co. (Greenville, S.C.) and certain of its affiliated companies (the “Power Systems business”) of Rockwell Automation, Inc. (Milwaukee).
Baldor will purchase 100% of the equity interest in the Power Systems business for $1.8 billion, comprised of $1.75 billion in cash and approximately 1.6 million shares of Baldor common stock. The transaction is expected to be completed in the first quarter of 2007 and is subject to customary closing conditions and necessary regulatory approvals.
The combined company will be one of the leading North American manufacturers of industrial electric motors and power transmission products. The Power Systems business, which markets its products under the Reliance Electric and Dodge brand names, complements Baldor’s business in industrial electric motors, drives and generators.
“The Reliance and Dodge businesses are a great fit with our existing businesses,” said John McFarland, chairman and CEO of Baldor. “The Power Systems business will complement and add strength to Baldor’s product line. The Power Systems business, like Baldor, provides the best industrial products available in the marketplace and sells them to value-minded customers.
Source: Baldor Electric Co.