In a move that would extend its line of power transmission products and larger motors, Baldor Electric Co. Fort Smith, Ark., said it has agreed to acquire the power systems business of Rockwell Automation Inc. for $1.8 billion, mostly in cash.
Baldor said it will pay $1.75 billion in cash and about $50 million in stock for the unit, which sells its products under the Reliance Electric and Dodge brand names.
Baldor manufactures motors, drives and generators. The company, with 3,900 employees and 14 manufacturing facilities, had 2005 revenues of $721 million.
Rockwell said in June that it planned to sell the business, which manufactures electric motors, power conveyor belts and industrial systems. It also makes the bearings and gears used to transmit mechanical power through factories, mines and oil operations.
Rockwell Automation bought Reliance for $1.6 billion in cash after a bidding war with General Signal Corp., Stamford, Conn., in late 1994.
Reliance is a significant part of Rockwell Automation, one Rockwell Automation distributor previously told EM. He said Rockwell Automation and Reliance primarily went to market through separate sales forces, and that while some Rockwell Automation distributors carried Reliance products, the company did much of its business selling through motor distributors and motor repair shops.