|Original Press release|
200 State St.
Beloit, WI, 53511
Regal Beloit Acquires CMG Engineering Group Pty. Ltd.
April 6, 2010 (BELOIT, WI): Regal Beloit Corporation (NYSE: RBC) today announced
that the Company has acquired CMG Engineering Group Pty, Ltd. (CMG)
headquartered in Melbourne Australia.
CMG manufactures and distributes fractional horse power industrial motors, blower
systems, and industrial metal products with operations in Australia, New Zealand, South
Africa, Malaysia, Singapore, the United Kingdom, and the Middle East. Also included is
CMG's Technology center and certified motor and drive testing facilities located in
Australia. The business also distributes integral horsepower industrial motors,
mechanical power transmission products, material handling equipment, electrical
insulating materials, magnet wire, and specialty conductors in Australia and New
The purchase price was approximately $75.0 million in cash, the assumption of
approximately $5.5 million in net liabilities and one hundred thousand shares of Regal
Beloit Common Stock.
The business is expected to add approximately $92.0 million to sales and add $.04 to
diluted earnings per share in 2010. The Company's guidance includes the estimated
impact of transaction costs, purchase accounting and intangible amortization based on
the preliminary purchase price allocation. Sales for CMG in 2011 are expected to be
approximately $128.0 to $135.5 million and the addition to diluted earnings per share
are expected to be $.12 to $.15 for the business, including the dilutive impact of
additional shares issued.
According to Henry W. Knueppel, Chairman and CEO of Regal Beloit, "We are very
excited to announce the acquisition of CMG. The CMG business is a strong and
growing business across the AsiaPacific
Region, South Africa, and the Middle East.
This acquisition further expands the infrastructure necessary to significantly expand our
commercial efforts in these critical regions. The company has an outstanding
management team that has continuously grown the business at a multiple of market
growth rates. Given this track record and the opportunities that RBC can bring to CMG,
we are very confident that we will see accelerated growth. We have for some time
searched for a commercial infrastructure in these important geographical regions that
would allow us to leverage our global manufacturing platform. The combination of CMG
and Regal Beloit's Asia Pacific operations creates both a leading commercial and
manufacturing footprint and an opportunity to take advantage of significant synergies
between the organizations. CMG is a perfect fit to further complete this portion of our
Jack Gringlas, Group Managing Director and Owner of CMG Engineering Group stated,
"I am confident that we have found the ideal acquirer for our business. RBC will provide
the best platform to secure the future of the CMG business and its team of experienced
and dedicated staff. I will be continuing with CMG in the role of Group Managing
Director. I am extremely excited about the future of CMG as a result of this sale."
About REGAL BELOIT CORPORATION:
Regal Beloit Corporation is a leading manufacturer of mechanical and electrical motion
control and power generation products serving markets throughout the world. Regal
Beloit is headquartered in Beloit, Wisconsin, and has manufacturing, sales, and service
facilities throughout the United States, Canada, Mexico, Europe and Asia. Regal
Beloit's common stock is a component of the S&P Mid Cap 400 Index and the Russell