Rockwell Automation, Inc. announced today that the antitrust waiting period under the Hart-Scott-Rodino Act has expired without the need for any further review of its sale of Reliance Electric Company and certain of its affiliated companies to Baldor Electric Company. Rockwell is selling its Dodge mechanical and Reliance Electric motors and motor repair services business to Baldor Electric Co.
Baldor Electric will become of the largest North American manufacturers of industrial electric motors and mechanical power transmission products.
Baldor will pay $1.8 billion for 100% of the equity interest in Rockwell's Power Systems according to a statement released Nov. 7, 2006 at the time of the announcement of the sale. Power Systems has 14 manufacturing facilities with approximately 4,300 employees worldwide.
"Baldor is a great company with an outstanding management team. I believe there is a compelling cultural and strategic fit between Baldor and our Reliance and Dodge businesses. Both organizations have similar operating philosophies and are committed to treating employees with respect, delivering high quality products and providing exceptional service to our customers. Power Systems will benefit significantly from ownership that is dedicated to investing on a global basis to create a leading motors and power transmission business," said Keith D. Nosbusch, Chairman and CEO of Rockwell Automation in a statement released Nov. 7.
The transaction is expected to close around Jan. 31, 2007.
