Regal Beloit Corporation (NYSE:RBC - News) recently issued senior unsecured notes worth $423 million in a private placement. In addition, the company expects to issue senior unsecured notes of $77 million in the near term.
The company will divide the issue into seven portions, with maturity ranging from seven to twelve years and fixed interest rates ranging from 4.09% to 5.09%.
Last year, the company agreed to acquire 100% of the stock and assets of EPC from A.O. Smith for approximately $875 million. Of the total consideration, $700 million will be paid in cash and balance in shares of Regal Beloit common stock.
Based in Tipp City, Ohio, EPC manufactures and sells a full line of motors for hermetic, pump, distribution, heating, ventilation and air conditioning (:HVAC) and general industrial applications.
Management believes that EPC's product portfolio is complementary to Regal Beloit's and has targeted synergies of $30 million–$40 million, spanning over three to four years from this acquisition.
As a consequence of the merger, the company expects to add approximately $700 million to the top line and increase earnings per share (excluding one-time items) in the first full year following the acquisition.
Regal Beloit continues acquiring businesses with its focus on energy efficiency technology, strengthening its geographic footprint and offering a synergistic fit.
Headquartered in Beloit, Wisconsin, Regal Beloit manufactures mechanical and electrical motion control and power generation products.
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