Regal Beloit acquires Alstom's motors and fans business

Regal Beloit Corporation announced that the company has acquired Alstom's motors and fans business in India. The business is located in Kolkata, India and manufactures and markets a full range of low and medium voltage industrial motors and fans for the industrial and process markets in India. Alstom is noted for high-quality process-duty motors with a full range from 1 to 3500 horsepower. The business will be reported as part of the Company's Electrical Segment. Terms of the deal were not disclosed. The purchase price was paid in cash.

Regal Beloit expects the business to add approximately $10.0 million and $80.0 million to sales for the fourth quarter of 2007 and full year 2008, respectively. It is expected that the acquired business will be effectively neutral to diluted earnings per share for 2007 and add between $.06 and $.08 to diluted earnings per share in 2008, including planned synergies. The Company's estimates include the impact of purchase accounting and estimates for the allocation of the purchase price.

According to Henry W. Knueppel, chairman and CEO of Regal Beloit, "The acquisition of the Alstom India industrial motor and fan business is another significant step in the execution of our globalization initiative. We intend to continue to improve our global commercial presence to better serve our customers and participate in high growth geographies. As well, we intend to maximize the capabilities of our manufacturing footprint to benefit all RBC businesses."