Emerson Agrees To Sell Power Transmission Solutions Unit In $1.44 Bln Deal

(RTTNews) - Emerson (EMR), a diversified technology company, said it has agreed to sell its Power Transmission Solutions business unit to Regal Beloit Corp. (RBC). The transaction is valued at $1.44 billion, representing cash proceeds of $1.4 billion and assumption of certain post-retirement liabilities.

The deal is expected to close in the first calendar quarter of 2015, and proceeds from it will be used for incremental share repurchase in fiscal 2015.

Currently a part of Emerson's Industrial Automation segment, Power Transmission Solutions had 2014 revenue of over $600 million. It is based in Florence, Kentucky, and employs over 3,000 people across the globe.

The business designs and manufacturers couplings, bearings, conveying components, gearing, drive components, and supporting services and solutions, with brands including Browning, Jaure, Kop-Flex, McGill, Morse, Rollway, Sealmaster, and System Plast.

Chairman and Chief Executive Officer David Farr said, "This transaction allows us to better focus on our value creation priorities and provides Regal Beloit with a unique opportunity to strengthen and grow its mechanical power transmission segment."