Beloit, Wis., Dec. 5, 2018 /PRNewswire/ -- Regal Beloit Corporation (NYSE: RBC) today announced that it has entered into an agreement to sell its highly engineered drives and control systems business (described for purposes of the sale as "Regal Drive Technologies") to an affiliate of Sun Capital Partners, Inc.
With 2018 estimated revenue of $131 million, Regal Drive Technologies has 450 employees around the world. The business designs and manufactures engineered controls, starters and drives. The closing of the transaction is subject to customary regulatory approvals and is expected to occur by the end of the first quarter 2019.
"This transaction is consistent with our enterprise strategy to focus, innovate and simplify," said Chairman and Chief Executive Officer Mark Gliebe. "We believe it will allow us to put more focus on our core businesses.
"Regal Drive Technologies has an outstanding management team and a bright future. I am grateful to our employees for their commitment to Regal and to our customers. We will work closely with Sun Capital to ensure a smooth transition for customers and employees."
Regal expects the divested businesses to deliver an estimated $0.18 diluted earnings per share for the full year 2018. Management expects to discuss the transaction in greater detail during the Company's next earnings call.
Baird and Foley & Lardner, LLP acted as advisors to Regal Beloit Corporation on this transaction.
About the Company
Regal Beloit Corporation (NYSE: RBC) is a leading manufacturer of electric motors, electrical motion controls, power generation and power transmission products serving customers throughout the world. We create a better tomorrow by developing and responsibly producing energy-efficient products and systems.
Our company is comprised of three operating segments: Commercial and Industrial Systems, Climate Solutions and Power Transmission Solutions. Regal is headquartered in Beloit, Wisconsin and has manufacturing, sales and service facilities worldwide. For more information, visit RegalBeloit.com.