BELOIT, Wis., Sept. 30 /PRNewswire-FirstCall/ -- Regal Beloit Corporation (NYSE: RBC) today announced that the Company has acquired Dutchi Motors B.V. (Dutchi) located in Arnhem, The Netherlands.

Dutchi is a leading distributor of industrial motors in Western and Eastern Europe, South Africa, Russia and the Middle East. Dutchi is one of the largest distributors of the Company's Hwada motor products, which was purchased by the Company in April 2008. The Dutchi business will be reported as part of the Company's Electrical Segment.

The business is expected to add approximately $11.0 to $13.0 million to sales and add $.01 to $.02 to diluted earnings per share in 2008. The Company's guidance includes the estimated impact of purchase accounting and intangible amortization based on the preliminary purchase price allocation. Sales for Dutchi in 2009 are expected to be approximately $70-$75 million and the addition to diluted earnings per share are expected to be $.05 to $.08 for the business. Because of the sales relationship between Dutchi and the Company's Hwada business, approximately $25.0 million of annual sales previously attributed to Hwada will now be classified as intercompany sales and will therefore reduce the reported sales for the Company as a result of this transaction. The purchase price was approximately $34.0 million in cash and the assumption of approximately $3.2 million in net liabilities.

According to Henry W. Knueppel, Chairman and CEO of Regal Beloit, 'We are very excited to announce the acquisition of Dutchi. The Dutchi business is a strong and growing business across Eastern and Western Europe, South Africa, Russia and the Middle East. With Dutchi joining our expanding family, we will now have in place the infrastructure necessary to significantly expand our commercial efforts in these critical regions. The company has an outstanding management team that has continuously grown the business at a multiple of market growth rates. Given this track record and the opportunities that RBC can bring to Dutchi, we are very confident that we will see accelerated growth across these regions even in light of the short-term prospects for Western Europe.