Regal Beloit to sell engineered drives and control systems business

Freeman Staff

Dec. 6, 2018

BELOIT — Regal Beloit Corporation announced Wednesday it has entered into an agreement to sell its highly engineered drives and control systems business to an affiliate of Sun Capital Partners, Inc.

With 2018 estimated revenue of $131 million, Regal Drive Technologies has 450 employees around the world. The business designs and manufactures engineered controls, starters and drives. The closing of the transaction is subject to customary regulatory approvals and is expected to occur by the end of the first quarter 2019.

“This transaction is consistent with our enterprise strategy to focus, innovate and simplify,” said Chairman and Chief Executive Officer Mark Gliebe in a statement. “We believe it will allow us to put more focus on our core businesses.”

Regal expects the divested businesses to deliver an estimated $0.18 diluted earnings per share for the full year 2018. Management expects to discuss the transaction in greater detail during the company’s next earnings call.