Regal Rexnord Penned A Deal To Sell Its Industrial Motors And Generators Businesses for $400M
Portfolio Pulse from Benzinga Newsdesk
Regal Rexnord Corporation (NYSE:RRX) has agreed to sell its Industrial Motors and Generators businesses, which make up the majority of its Industrial Systems segment, to WEG S.A. (OTC:WEGZY) for $400 million. The deal is expected to close in the first half of 2024, pending regulatory approvals and customary closing conditions.
September 25, 2023 | 10:18 am
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POSITIVE IMPACT
WEG S.A. is acquiring a major business segment from Regal Rexnord, which could potentially increase its future revenue streams.
The acquisition of a major business segment could lead to an increase in future revenues, which may positively impact the stock price in the short term. However, the $400M cash outflow could impact short-term liquidity.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Regal Rexnord is selling a major part of its Industrial Systems segment, which could impact its future revenue streams.
The sale of a major business segment could lead to a decrease in future revenues, which may negatively impact the stock price in the short term. However, the $400M cash inflow could be used for other profitable ventures.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100