BELOIT, Wis. (AP) — Regal Beloit Corp., an electrical and mechanical parts maker, said Monday it has acquired two businesses that specialize in making motors and blowers used in heating, ventilating and air conditioning systems.
Regal Beloit said it has acquired Jakel Inc. and completed the previously announced buyout of certain North American and Asia/Pacific operations from Tecumseh Products Co.
Regal Beloit paid $220 million in cash to Tecumseh for its Fasco residential and commercial operations and the stock of Fasco's Asia and Pacific operations. It did not disclose financial terms of the Jakel deal.
The company's estimate of the earnings impact of the combined businesses ranges from a gain of 2 cents to a reduction of 2 cents per share in 2007. The businesses are expected to add to earnings per share by 20 to 25 cents in 2008. The estimates include the impact of purchase accounting and the purchase price.
Regal Beloit expects the combined businesses to add about $30 million and $85 million to sales for the third and fourth quarters of 2007, respectively. It anticipates they will add about $355 million in sales to 2008.
The purchases are intended to expand Regal Beloit's presence geographically as well as its energy-efficient product line. Both businesses manufacture motors and blowers for air moving systems, including alternative fuels systems, water heaters and HVAC systems. Their facilities are in Missouri, Mexico, Thailand and Australia.
The Jakel and Fasco acquisitions will be combined and operate as a unit of Regal Beloit's electrical division.