On March 27, electric motors manufacturer Regal Rexnord Corporation announced it had completed its $5 billion acquisition of Altra Industrial Motion Corp., roughly five months after the two companies agreed to an all-cash deal.
“I am thrilled to welcome Altra associates to Regal Rexnord, and incredibly excited about all that we expect to accomplish as one, enhanced Regal Rexnord team,” said Regal Rexnord CEO Louis Pinkham. “Together, we have clear lines of sight to faster growth, higher margins, stronger free cash flow and improved ROIC.”
In a news release announcing that the deal had been finalized, Regal Rexnord said the acquisition would bundle capabilities of the pro forma business across power transmission and automation, including a “more expansive global sales channel and aftermarket support network.”
The company said the deal also will position Regal Rexnord to offer more robust sub-systems, including industrial powertrains, across a wider range of end markets. Regal Rexnord said examples of end markets with enhanced capabilities include: medical, warehouse & logistics, food & beverage, aerospace, alternative energy and other industries.
“Altra’s Automation & Specialty platform transforms our existing automation portfolio into a meaningful, global automation solutions provider,” Pinkham said. “Altra’s Power Transmission Technologies business significantly enhances our legacy power transmission portfolio, in particular our industrial powertrain offering, by adding complementary products in brakes, gears, and clutches. The combined power transmission, automation and powertrain capabilities of the new Regal Rexnord offer customers a significantly enhanced value proposition across a wider range of end markets — many with highly attractive secular growth tailwinds.”