Regal Beloit Corp., Beloit, WI, has acquired Joyce Court Holdings Ltd. and Grand Delight Investments Ltd., sole shareholders of Wuxi Hwada Motor Co. and Wuxi New Hwada Motor Co. (collectively Hwada) in Wuxi, China, for $27.6 million in cash.
Hwada is a designer and manufacturer of Integral IEC and NEMA electric motors, which are used in various industrial applications such as compressor, pump, paper and steel processing, and power plants. The product line includes motors up to 5000 kw (6700 hp). Approximately 50% of Hwada's product sales are in the China industrial markets. The other 50% is exported to Europe (35%), the U.S. (10%) and Southeast Asia (5%). The business will be reported as part of the Company's Electrical Segment.
The business is expected to add approximately $75 million-$80 million to sales in 2008.
The acquisition represents Regal Beloit's first wholly owned industrial motor facility in China.
Regal Beloit is a manufacturer and marketer of branded mechanical and electrical motion control and power generation products serving markets. Regal Beloit has manufacturing, sales, and service facilities throughout the United States, Canada, Mexico, Europe and Asia.