Regal Beloit Corp., a manufacturer of motion-control and power-generation products, says it has acquired Dutchi Motors B.V.
“We have a strong balance sheet and a growing business. Although the economy is worrisome, we aren't in a position where we have to take all our cards off the table. We can make smart moves when they are available,” said Regal Beloit Chairman and CEO Henry Knueppel.
Headquartered in Beloit at 200 State St., Regal Beloit has manufacturing, sales and service facilities throughout the U.S., Canada, Mexico, Europe and Asia.
Dutchi is based in the Netherlands and distributes Regal Beloit's Hwada motor products and other industrial motors in Europe, South Africa, Russia and the Middle East.
Dutchi's results will be reported as part of Regal Beloit's electrical segment. The acquisition announced today is expected to add between $11 million and $13 million to sales for the company.
Sales for Dutchi in 2009 are expected to be about $70 million to $75 million. Regal Beloit officials say the addition to earnings per share is expected to be between 5 cents and 8 cents.
The purchase price was approximately $34 million in cash and the assumption of approximately $3.2 million in net liabilities.
Although the move won't result in any jobs in Beloit initially, the acquisition will help the company's overall growth, Knueppel said.
Knueppel said Dutchi is a large distributor of motor and gear parts with a strong infrastructure.
“The opportunity is significant to take what is a strong infrastructure in a growing company and bring our products to it,” Knueppel said.
This year marks the 53rd year of operation for Regal Beloit.
From electric motors and generators to gear reducers and electronic switch gear, Regal Beloit's products are essential to the function of much of the equipment powering the world. Its products can be found in home furnaces, pumps, elevators, conveyors, X-ray machines, office equipment, power stations and more.