Regal Beloit Corporation purchases Morrill Motors

Regal Beloit Corporation announced that the company has acquired Morrill Motors. The acquired business is a leading designer and manufacturer of fractional horsepower motors and components for the commercial refrigeration and freezer markets. Included in the motor offering are technology based-variable speed products. The business will be reported as part of the company’s Electrical Segment. The purchase price was not disclosed. The purchase price was paid in cash, subject to final working capital and other customary post close adjustments.

Regal Beloit expects the business to add approximately $8.0 million to fourth-quarter sales and add approximately $42.0 million in sales to 2008. It is expected that the combined businesses will be neutral to diluted earnings per share for 2007 and add $.03 to $.05 to diluted earnings per share in 2008, including planned synergies. The Company’s estimates include the estimated impact of purchase accounting and intangible amortization based on the preliminary purchase price allocation.

According to Henry W. Knueppel, chairman and CEO of Regal Beloit, “The business is a great addition to our portfolio of energy efficient system solutions for our customers. We believe the Morrill technology, coupled with our technologically advanced products, positions us well to capitalize on the market opportunities in the commercial refrigeration segment. Additionally, Morrill brings with it a wholly owned subsidiary located in Jiaxing China. This acquisition will further expand our global manufacturing and commercial capabilities. With Morrill’s facilities in Erwin, Tenn., and Jiaxing China it is well positioned to serve customers’ growing needs for technology and value. It is a well run company and we are excited to have it join our growing Regal Beloit family.”