Regal Beloit buys Chinese industrial motor maker

Industrial Distribution staff -- Industrial Distribution, 4/28/2008 7:38:00 AM

Regal Beloit Corp. acquired Chinese industrial motors manufacturer Wuxi Hwada Motor Co. for $27.6 million in cash.

Hwada, which will be integrated into Regal Beloit’s electrical division, makes electric motors used in compressors, pumps, paper and steel processing and power plants. Roughly half of the company’s products are sold in China, with another 35 percent exported to Europe, 10 percent to the United States and 5 percent to Southeast Asia.

The Beloit, Wis.-based motion control and power generation products manufacturer said the deal also includes the assumption of $8 million in debt and a provision to pay Hwada’s former owners another $8.5 million after the sale of certain real estate assets. Regal Beloit said the deal is expected to add up to $80 million in annual sales.

“This is another significant, strategic-focused expansion of our industrial business in high-growth markets. The acquisition represents our first wholly owned industrial motor facility in China. Hwada is currently one of the top industrial motor companies in China. It enjoys a reputation of product excellence and rapid growth and comes with an excellent management team,” chairman and CEO Henry Knueppel said.

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