Regal Rexnord Plans To Sell Industrial Motors & Generators Businesses For $400M
Portfolio Pulse from Lekha Gupta
Regal Rexnord Corp (RRX) plans to sell its Industrial Motors and Generators businesses to WEG SA (WEGZY) for $400 million. The transaction, which includes most of RRX's Industrial Systems segment, is expected to close in H1 2024. RRX's CEO believes the sale aligns with the company's strategy of focusing on areas where it can achieve higher growth rates and margins. As of June 30, 2023, RRX had cash and cash equivalents of $659.6 million.
September 25, 2023 | 10:43 am
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NEUTRAL IMPACT
Regal Rexnord's sale of its Industrial Motors and Generators businesses to WEG SA could streamline its operations and focus on higher growth areas. The deal is expected to close in H1 2024.
The sale of the Industrial Motors and Generators businesses could help RRX streamline its operations and focus on areas where it can achieve higher growth rates and margins. However, the impact on the stock price in the short term is uncertain as the deal is expected to close in H1 2024.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
WEG SA is set to acquire Regal Rexnord's Industrial Motors and Generators businesses for $400 million. The deal is expected to close in H1 2024.
The acquisition of the Industrial Motors and Generators businesses could potentially enhance WEG SA's product portfolio and market presence. However, the impact on the stock price in the short term is uncertain as the deal is expected to close in H1 2024.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 75