BELOIT, Wis., April 25 /PRNewswire-FirstCall/ -- Regal Beloit Corporation(NYSE: RBC) today announced that the Company has acquired Joyce Court HoldingsLtd. and Grand Delight Investments Ltd., sole shareholders of Wuxi Hwada MotorCo. and Wuxi New Hwada Motor Co. (collectively Hwada) located in Wuxi, China.
Hwada is a leading designer and manufacturer of Integral IEC and NEMAelectric motors, which are used in various industrial applications such ascompressor, pump, paper and steel processing, and power plants. The productline includes motors up to 5000 kw (6700 hp). Approximately 50% of Hwada'sproduct sales are in the China industrial markets. The other 50% is exportedto Europe (35%), the United States (10%) and Southeast Asia (5%). Thebusiness will be reported as part of the Company's Electrical Segment.
The business is expected to add approximately $75.0 to $80.0 million tosales and add $.04 to $.06 to diluted earnings per share in 2008. TheCompany's guidance includes the estimated impact of purchase accounting andintangible amortization based on the preliminary purchase price allocation.The purchase price was $27.6 in cash and the assumption of approximately $8.0million in net liabilities. Additionally, under the terms of the transaction,the Company will pay to the seller up to $8.5 million received by the Companyin the future upon the sale of certain real property rights owned by Hwada.
According to Henry W. Knueppel, Chairman and CEO of Regal Beloit, 'We arevery excited to announce the acquisition of Hwada. This is anothersignificant, strategic-focused expansion of our industrial business in highgrowth markets. The acquisition represents our first wholly owned industrialmotor facility in China. Hwada is currently one of the top industrial motorcompanies in China. It enjoys a reputation of product excellence and rapidgrowth and comes with an excellent management team.'
The Company will further discuss this acquisition at the upcoming FirstQuarter Earnings conference call scheduled for May 1, 2008. For details onthe conference call, please refer to the conference call press release whichcan be found on the Company's website.
About REGAL BELOIT CORPORATION:
Regal Beloit Corporation is a leading manufacturer and marketer of brandedmechanical and electrical motion control and power generation products servingmarkets throughout the world. Regal Beloit is headquartered in Beloit,Wisconsin, and has manufacturing, sales, and service facilities throughout theUnited States, Canada, Mexico, Europe and Asia.
CAUTIONARY STATEMENT
The following is a cautionary statement made under the Private SecuritiesLitigation Reform Act of 1995: With the exception of historical facts, thestatements contained in this press release may be forward looking statements.Forward-looking statements represent our management's judgment regardingfuture events. We cannot guarantee the accuracy of the forward-lookingstatements, and you should be aware that results and events could differmaterially and adversely from those contained in the forward-lookingstatements due to a number of factors, including: unexpected issues and costsarising from the closing of the transaction and the integration of acquiredcompanies and businesses and marketplace acceptance of these and other recentacquisitions, including the loss of, or a decline in business from, anysignificant customers of Regal Beloit or the acquired businesses. Allsubsequent written and oral forward-looking statements attributable to us orto persons acting on our behalf are expressly qualified in their entirety bythe applicable cautionary statements. The forward-looking statements includedin this press release are made only as of the date of this release, and weundertake no obligation to update these statements to reflect subsequentevents or circumstances.
SOURCE Regal Beloit Corporation
