Industrial electrical equipment maker Regal Beloit Corporation (RBC) recently acquired custom-made low and medium voltage drives and soft starter producer Benshaw Inc. from Curtiss-Wright Corporation (CW). The transaction was worth $50 million.
With annual estimated revenues of approximately $60 million, Benshaw is a strategic fit for Regal Beloit’s existing custom electronic drives and controls businesses. Benshaw has created a niche market with its soft starters that are well respected throughout the industry. The custom drives business of the acquired company also complements Unico, a wholly-owned subsidiary of Regal Beloit that offers innovative motion control solutions.
The transaction is expected to be dilutive to Regal Beloit’s second-half 2014 earnings per share by a couple of cents, including the impact of purchase accounting adjustments and transaction costs. For 2015, Benshaw is anticipated to be accretive to earnings by 6 to 9 cents per share. A detailed commentary on the acquisition will be available during the second-quarter 2014 earnings call by Regal Beloit.
Headquartered in Beloit, WI, Regal Beloit is a leading manufacturer of electrical and mechanical motion control products. Major products include electric motors, HVAC electric motors, electric generators and controls, and mechanical motion control products. The products are offered to diversified end markets such as commercial construction and building, industrial machinery, industrial equipment, process industries, industrial transportation, and consumer related segments. The company has manufacturing, sales, and service facilities throughout the U.S., Canada, Mexico, Europe, and Asia.
Regal Beloit currently has a Zacks Rank #3 (Hold). Other players in the industry worth mentioning include ESCO Technologies Inc. (ESE) and Franklin Electric Co., Inc. (FELE), both carrying a Zacks Rank #2 (Buy).
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