Posted October 27, 2022

Regal Renord to acquire Altra Industrial Motion

Regal Rexnord Corporation has reached a definitive agreement to acquire 100% of Altra Industrial Motion shares in an all-cash transaction for $62.00 per share.

Regal RexnordThe transaction values Altra at $4.95 billion, representing 13.6 times Altra's trailing 12 months adjusted EBITDA, or 9.5 times after factoring estimated run-rate cost synergies, according to a press release The transaction is expected to close in the first half of 2023.

Altra is a global designer and manufacturer of a wide range of highly engineered motion control, automation, and power transmission solutions. The transaction expands Regal Rexnord's portfolio, customer reach, and product diversity while enabling the creation of shareholder value through enhanced growth and substantial cost synergies.

"This acquisition opens up many new avenues for profitable growth. In particular, Altra's Automation & Specialty platform transforms our existing automation portfolio – namely ModSort and Automation Solutions (formerly Arrowhead) – into a meaningful, global automation solutions provider. The automation business has highly attractive growth prospects and margins, serving many markets that have anticipated secular growth tailwinds, including factory automation, medical, aerospace, and warehouse & logistics," said Regal Rexnord CEO, Louis Pinkham.

"The transaction also significantly enhances our power transmission portfolio, in particular our industrial powertrain offering, by adding complementary products in brakes, gears, and clutches, while extending the number of end markets in which we actively participate," he said.

Regal Rexnord engineers and manufactures industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems.