Emerson agrees $1.44bn sale of transmission unit
Regal Beloit Corp expected to take control of division in Q1.
Emerson has agreed to sell its Power Transmission Solutions business unit to Regal Beloit Corporation due to a change in strategy.
The transaction is valued at $1.44bn and is expected to close in the first quarter of 2015, subject to regulatory approvals.
Currently a part of Emerson’s Industrial Automation segment, the Power Transmission Solutions business designs and manufacturers couplings, bearings, conveying components, gearing, drive components, and supporting services and solutions.
Brands include Browning, Jaure, Kop-Flex, McGill, Morse, Rollway, Sealmaster, and System Plast.
The business has 2014 revenue of more than $600mn and is based in Kentucky with over 3,000 employees across the globe.
“While the Power Transmission Solutions business no longer aligns with the strategic direction of our portfolio, it is a strong business with an outstanding management team that has created significant value while part of Emerson,” said chairman and CEOr David N. Farr.
“This transaction allows us to better focus on our value creation priorities and provides Regal Beloit with a unique opportunity to strengthen and grow its mechanical power transmission segment.”