NEWS n THE BRAZILIAN MOTOR-MAKER WEG is buying the industrial motors and generators operations that make up most of Regal Rexnord Industrial Systems business, for $400m. This deal focuses on Regal Rexnord’s Marathon, Cemp and Rotor brands. WEG will take on around 2,800 people working in 10 factories in seven countries (the US, Mexico, China, India, Italy, Netherlands and Canada) and commercial branches in 11 countries. In 2022, these businesses generated revenues of $541.5m, with an adjusted EBITDA margin of 9.5%. Regal Rexnord CEO, Louis Pinkham, says the sell-off follows a strategic review. “The sale of our industrial motors and generators businesses is consistent with our strategy of focusing the portfolio on products, sub-systems, end-markets and/or applications where we can achieve GDP-plus growth rates and gross margins above 35%. “While we have made significant progress improving the growth prospects and margins at these businesses,” he adds, “we believe that WEG is in a better position to accelerate their performance going forward.” WEG president Harry Schmelzer says the acquisition aligns with his company’s strategy of continuous and sustainable growth, international expansion and diversifying its industrial operations. “The geographic distribution of these operations are complementary to WEG’s current presence and will help in achieving greater scale and efficiency in reducing costs as we integrate new operations into existing ones,” he explains. “With a long history in the market and global presence, this acquisition will support the continued growth of the WEG Group in the industrial electric motor and generator markets, through the incorporation of recognised brands and a line of products complementary to the group's current portfolio.” Regal Rexnord was created last year following the merger of the motors and mechanical power transmission manufacturer Regal Beloit with Rexnord Process and Motion Control. At the time, the combined business employed about 29,000 people with manufacturing facilities on five continents. Earlier this year, Regal Rexnord bought Altra Industrial Motion for $4.95bn, saying the deal would make it a global automation supplier with more than 70% of its sales in expanding markets. WEG buys Regal Rexnord’s motors businesses for $400m Regal Rexnord’s motors and generators portfolio spans a broad range of sizes and technologies
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