eBearing news - Invensys Announces Plans to Sell Off Rexnord, Link-Belt, MB and W.M.Berg

The company will be left with two core divisions - Production Management and Energy Management, with total sales of 4.0 billion Pounds Sterling (USD $5.7 billion).

The Industrial Components and Systems Division consists of Rexnord, Flow Control, Fasco Motors, Sensor Systems, Drive Systems, BAE Automated Systems, Energy Storage and CompAir.

Invensys said, "Whilst these are good businesses, they fall outside the scope of the strategy and operate in consolidating markets. They will be managed through to disposal to ensure that shareholder value is protected in the process." In total, they have sales of 2.3 billion Pounds Sterling (USD $3.29 billion). Invensys expects to net 1.5 billion Pounds Sterling ($2.14 billion) from the sale, all of which will be used to pay down debt.

Rexnord, headquartered in Milwaukee, Wisconsin, is a group of businesses which manufacture power transmission and conveying components. Rexnord has five bearing operations: Link-Belt, MB Bearings, Rex, Filament Bearing, and W.M. Berg.

Link-Belt Bearing Division, headquartered in Indianapolis, Indiana, manufactures a wide range of automotive and industrial bearings, inserts and mounted units. The company has a second manufacturing location in Clinton, Tennessee which produces cylindrical roller bearings.

Link-Belt is best known for its industrial bearing inserts and mounted units, including pillow blocks, flange units, plummer blocks and all-stainless units. Link-Belt offers not only ball bearings and cylindrical roller bearings, but also sleeve bearings in babbitt, bronze and cast iron.

Rex Bearings, located in Downers Grove, Illinois, manufactures industrial mounted roller bearings, pillow blocks, flange blocks and take-up units which allow for a wide degree of shaft misalignment within the bearing itself.

Rexnord's Filament Bearing Operation, also located in Downers Grove, Illinois, manufactures Duralon plain inserts of Teflon and carbon fiber.

MB Bearings, located in Valparaiso, Indiana, will also be affected. Acquired by Rexnord in 1998, MB manufactures standard and custom precision mounted bearings and inserts - pillow blocks, flange units, take-up units, flange brackets and hanger units.

W.M. Berg, Inc. is located in Rockaway, New York. They specialize in manufacturing and distributing miniature precision mechanical components. The Berg miniature bearing line includes ball, roller, needle, nonmetallic, sintered, spherical, thrust and oilless. Sizes range from 3/64" to 1/2".

Invensys did not give a timetable for the divestitures, except to say that the new structure would be in place by May 1, 2002, and the affected operations were expected to be sold by the end of the fiscal year (September 30, 2002).