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.
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SOURCE Regal Rexnord Corporation