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The eBearing News
November 7, 2006
Baldor Acquiring Reliance Electric
and Dodge Bearing from Rockwell
copyright © 2006 eBearing Inc.
Baldor Electric Company (USA; NYSE:
BEZ)
announced it will acquire Dodge Bearing, Reliance Electric and other operations
related to Rockwell Automation's Power Systems Business division.
The transaction will cost Baldor $1.75 billion in cash and 1.6 million shares of Baldor
common stock; the deal is projected to close in early 2007.
Although it had been shopping the deal, Rockwell publicly announced in June that its Power
Systems Division was officially on the block for sale. Power Systems includes
Reliance Electric motor and motor repair, and Dodge mechanical components.
article: Rockwell Automation to divest bearing businesses
Dodge manufactures a wide variety of bearings, gears and other power transmission
components. On the bearing side, it offers mounted and unmounted bearings: ball,
tapered roller, spherical roller, hydrodynamic, plain sleeve and journal bearings.
For mounted bearings, it offers mounted ball bearings, take-up frames, and other components.
Founded in 1920, Baldor Electric is a leading manufacturer of industrial electric motors,
drives and generators. For many people, Baldor was a surprise acquirer, if only because its sales are
far less than the Rockwell operations is it acquiring. Baldor operates 14 manufacturing locations
and employs more than 3,900 people.
Baldor said the combined organization will be a leading North American manufacturer of industrial
electric motors and power transmission equipment. The Rockwell businesses will add approximately $1
billion of yearly sales and contribute higher margins ($150 million in 2005) than Baldor's current
product lines. Baldor recently reported record third quarter sales of $213 million and had 2005
sales of approximately $720 million.
Baldor's Chairman and CEO, John McFarland, said, "The Reliance and Dodge businesses are a great
fit with our existing businesses. The Power Systems business will complement and add strength to
Baldor's product line. The Power Systems business, like Baldor, provides the best industrial products
available in the marketplace and sells them to value-minded customers.
Mr. McFarland went on to say, "Dodge products have been available for over 125 years, Reliance
motors for over 100 years and Baldor motors for over 85 years. These companies have a long history
of customer preference and good profitability. Baldor, Dodge and Reliance has strong reputations
in the industrial marketplace. This is a unique opportunity to build a stronger company for our
customers, our employees and our shareholders."
Sources told eBearing they do not expect any immediate changes in the Dodge bearing business.
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
trademarks of eBearing Inc.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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