After missing its self-imposed deadline, Invensys plc (U.K.) is redoubling efforts to divest Rexnord, its industrial division and home to five U.S. bearing manufacturers.

In February 2002, Invensys announced a sweeping management and business restructuring designed to address its increasingly-troubled operations and mounting debt load. Part of that restructuring plan called for selling off all Industrial Components and Systems sector businesses, including Rexnord, by the close of this fiscal year -- September 30, 2002.

The company would then be left with two core operations -- Production Management and Energy Management -- with total sales of 4.0 billion pounds Sterling ($5.7 billion).

Of the eight operations to be divested, five have already been sold, for $1.4 billion. However, the company has reportedly found little or no interest from potential buyers for Rexnord. In the meantime, Invensys debt continues to mount, hitting USD $4.68 billion as of the end of March.

Invensys has now set March 30, 2003 -- the end of second quarter 2003 -- as the new target date for selling off Rexnord. Publicly, the target selling price for Rexnord remains the same as it was earlier this year, with the proceeds all earmarked for paying 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".