Milwaukee-based Rockwell Automation Inc. today announced that it has signed a definitive agreement to sell the company's Dodge mechanical and Reliance Electric motors and motor repair services businesses to Baldor Electric Co. of Fort Smith, Ark.
Baldor will purchase 100 percent of the equity interest in the Rockwell's Power Systems business for $1.8 billion, comprised of $1.75 billion in cash and approximately 1.6 million shares of Bador common stock, with a market value of about $50 million.
The transaction is expected to be completed in the first quarter of 2007 and is subject to customary closing conditions and necessary regulatory approvals.
The combined company will be one of the leading North American manufacturers of industrial electric motors and power transmission products.
The Power Systems business is based in Greenville, S.C. The sale will have no direct impact on Rockwell's operations in Milwaukee, company spokesman John Bernaden told SBT this morning.
"The Reliance and Dodge businesses are a great fit with our existing businesses," said John McFarland, chairman and chief executive officer of Baldor. "The Power Systems business will complement and add strength to Baldor's product line. The Power Systems business, like Baldor, provides the best industrial products available in the marketplace and sells them to value-minded customers."
Keith Nosbusch, chairman and chief executive officer of Rockwell Automation, said, "Baldor is a great company with an outstanding management team. I believe there is a compelling cultural and strategic fit between Baldor and our Reliance and Dodge businesses. Both organizations have similar operating philosophies and are committed to treating employees with respect, delivering high quality products and providing exceptional service to our customers. Power Systems will benefit significantly from ownership that is dedicated to investing on a global basis to create a leading motors and power transmission business."
Rockwell to sell motor businesses
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