Regal Beloit To Buy Emerson's Power Transmission Solutions Business

(RTTNews) - Regal Beloit Corp. (RBC) announced it has entered into a definitive agreement to acquire the Power Transmission Solutions business or PTS of Emerson Electric Co. (EMR) for about $1.44 billion comprised of $1.4 billion in cash plus $40 million of assumed liabilities.

Regal management said it estimates 2015 accretion between $0.40 and $0.60 per share including purchase accounting adjustments and closing costs, and 2016 accretion between $0.95 and $1.15 per share. Transaction synergies are estimated to be $30 million within a four year period.

The company said it expects the transaction to close in the first quarter of 2015. Shareholder approvals are not required to complete the transaction.