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by Alan Alper, MA Editorial Staff
Posted on Tuesday, November 07, 2006 5:42:00 PM Sign Up to receive Daily News Alerts in your E-mail Inbox    | Abstract: | Baldor Electric Co., a maker of industrial motors, drives and generators, agrees to buy Rockwell's Reliance and Dodge businesses, which make motors and power transmission gear respectively, in a cash and stock deal valued at $1.8 billion. |
| Keywords: | Baldor Electric, Rockwell Automation, Reliance, Dodge, Power Systems, industrial motors, drives, generators, gear boxes |
Making good on a promise made four months ago, Rockwell Automation today disclosed that it has reached an agreement to sell its Power Systems business to Baldor Electric Co., a maker of industrial motors, drives, and generators, in a cash and stock deal valued at $1.8 billion. Under the terms of the deal, Baldor will pay $1.75 billion in cash and tender approximately 1.6 million shares of its common stock, valued at $50 million, for Power Systems, which includes Rockwell's Dodge power transmission and Reliance motors business units. The transaction is expected to close early in the first quarter of 2007, and is subject to regulatory approvals, the two companies said. For Rockwell, the sale of its $1 billion Power Systems business continues a long-standing push to focus its strategy around industrial automation products and services. For Baldor, the deal extends its motors business into the high-end of the market via Reliance, and offers a way -- through Dodge -- to diversify into the power transmission business. [Click to continue] |
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