Baldor Electric Company Announces Acquisition of Maska Power Transmission Business
Fort Smith, Arkansas - Baldor Electric Company (NYSE:BEZ) markets, designs, and manufactures industrial electric motors, power transmission products, drives, and generators and is based in Fort Smith, Arkansas. Today Baldor announced that it has acquired Poulies Maska, Inc. of Ste-Claire, Quebec, Canada.
Maska is a designer, manufacturer and marketer of sheaves, bushings, couplings and related mechanical power transmission components. They have 180 employees primarily located in Canada and a new facility in China. Maska's 2007 sales were approximately $33 million.
John McFarland, Chairman and CEO of Baldor said, "We are excited to announce the addition of Maska to our line of mechanical power transmission products. Over the past 5 years the management team at Maska has increased sales and profits by nearly 50%. Their two automated and efficient facilities produce a large variety and some of the highest quality products available in the marketplace. Maska's sheaves and bushings complement our Dodge line with each having success in different parts of the market."
Benefits of the transaction include:
o Operating and gross margins significantly exceed Baldor's overall margins
o Gives Baldor a second plant in China to support international growth
o Results in leading market share of sheaves and bushings in North America
o Accretive to Baldor's earnings by approximately $0.03 per year, excluding synergies
The transaction was funded by cash and an existing credit facility. Additional terms were not disclosed.
For more information contact:
John McFarland, Chairman & CEO
Ron Tucker, President & COO
Phone: 479-648-5769
Fax: 479-648-5701
Tracy Long, Vice President - Investor Relations
Email: Investorinfo@baldor.com
