Baldor Electric Co., a manufacturer of industrial electric motors, drives and generators, announced Tuesday its acquisition of the Reliance Electric Co. and certain of its affiliated companies (the “Power Systems business”) from Rockwell Automation, Inc.
Baldor, headquartered in Fort Smith, Ark., will purchase 100 percent of the equity interest in the Power Systems business for $1.8 billion, comprised of $1.75 billion in cash and about 1.6 million shares of Baldor common stock, with a market value of $50 million.
The Power Systems business, which produces products under the Reliance Electric and Dodge brand names, employs 4,300 workers at 14 manufacturing facilities worldwide. Baldor has 3,900 employees at 14 manufacturing facilities worldwide.
The combined company will be one of the leading North American manufacturers of industrial electric motors and power transmission products.
The transaction is expected to close in the first quarter of 2007.
