"This is a very positive move for the Regal Cutting Tools business as it will be aligned with a world-leading manufacturer and marketer of high-speed and carbide rotary cutting tools," said Henry W. Knueppel, chairman and CEO of Regal-Beloit. "As we moved aggressively into motion control systems, electric motors and power generation over the past several years, the cutting tools business was no longer a strategic focus for us. The sale will allow Regal Cutting Tools, the largest special tap manufacturer in the United States, to lend its quick delivery model to over 70 countries where YG-1 markets their products. We are pleased that a global, cutting tool focused company has purchased the business and that we were able to agree to a structure that should benefit the employees, the community and the respective businesses."
The sale of the business will reduce Regal-Beloit's sales by approximately $17 million on an annual basis and will be neutral to earnings. The terms of the sale were not disclosed.
Regal-Beloit is a leading manufacturer of mechanical and electrical motion control and power generation products serving markets throughout the world. The company is headquartered in Beloit, Wis., and has global manufacturing, sales, and service facilities.
YG-1, based in Incheon City, Korea, manufactures a wide array of metal cutting tools including end mills, taps, drills and other tooling in high speed steel and carbide. YG-1 is one of the world's largest end mill manufacturers and markets products in 70 nations around the world. The company was founded in 1981 and has grown to over $100 million in annual sales with facilities in Asia, Europe, Australia and the United States.