Regal Rexnord's acquisition of Altra Motion is official
A major deal we reported on back in October has been finalized, with potentially major implications for industrial sectors. It's also a big win for American manufacturing.
A collage of couplings offered by Altra Industrial Motion.—Altra photo
Regal Rexnord Corporation, the well-known and experienced industrial conglomerate out of Beloit, Wisc., announced it has officially completed the acquisition of Altra Industrial Motion Corp., closing the deal that was signed on October 26, 2022.
Commenting on the announcement, CEO Louis Pinkham said, "I am thrilled to welcome Altra associates to Regal Rexnord, and incredibly excited about all that we expect to accomplish as one, enhanced Regal Rexnord team. Together, we have clear lines of sight to faster growth, higher margins, stronger free cash flow and improved ROIC."
Altra, headquartered in Braintree, Mass., in the Boston area, was founded in 2004. It is primarily a manufacturer of mechanical power transmission products – brakes, clutches, couplings, and the like.
"Altra's Automation & Specialty platform transforms our existing automation portfolio into a meaningful, global automation solutions provider. Altra's Power Transmission Technologies business significantly enhances our legacy power transmission portfolio, in particular our industrial powertrain offering, by adding complementary products in brakes, gears, and clutches. The combined power transmission, automation and powertrain capabilities of the new Regal Rexnord offer customers a significantly enhanced value proposition across a wider range of end markets – many with highly attractive secular growth tailwinds."
Pinkham went on to say, "I am highly confident that our well-aligned cultures and firmly-held shared values, hallmarks of both organizations, will lead to great success. Associates at both Regal Rexnord and Altra prioritize and value putting safety first, acting with integrity, driving purposeful innovation, offering an excellent customer experience and embracing a continuous improvement mindset. Together, we can create even more value for our customers, our fellow associates, and our shareholders."
The acquisition of Altra is expected to benefit customers in the following ways, according to a March 27 press release aimed at investors:
The aggregate capabilities of the pro forma business across power transmission and automation – including a more expansive global sales channel and aftermarket support network – position Regal Rexnord to offer more robust sub-systems, including industrial powertrains, and to do so across a wider range of end markets. Examples of end markets with enhanced capabilities include medical, warehouse & logistics, food & beverage, aerospace, and alternative energy, among others.
Notably, much of the business offers automation products that sit adjacent to its industrial powertrain content in many end user applications, putting Regal Rexnord in a unique position to offer customers "a wider and more value-added range of services, including up-front design, performance optimization, and diagnostic support," the company said.
The service offering is considered "further enhanced when including Regal Rexnord's suite of IIoT and data analytics capabilities," (marketed under the PerceptivTM brand) which are supported by proprietary data from its power transmission, automation and motor components related to how they inter-operate as part of a larger sub-system. Regal Rexnord believes it is now "better positioned for Industry 4.0, which will be critical to future new product development efforts."