Dear Supplier,

We are excited to announce the successful merger of Rexnord Process & Motion Control (PMC) business with Regal Beloit’s Power Transmission Solutions (PTS) segment, now known as the ‘Motions Controls Segment.’ Since our announcement in February 2021, we have been working diligently to ensure a smooth transition for our customers, associates and our supply base. During this time, our excitement has only grown as we bring these two premium, complementary businesses with strong portfolios and a combined 200+ year history of best-in-class performance.

From a supply chain perspective, the acquisition brings a new perspective to our supply chain as we recognize the opportunities to merge our combined spend of approximately $1 Billion. Contracts will need to be reviewed, supply relationships evaluated, and strategic partnerships forged. As with all transactions of this type, it is expected we achieve our synergy goals and we expect our supply base to collaborate and share your best ideas in support of this initiative. You will be hearing from your respective category managers shortly to discuss opportunities for growth as we work to consolidate our spend and make more meaningful relationships throughout our supply chain.

In addition to spend consolidation, we are working to standardize our supplier manuals, supplier quality expectations, supplier terms and conditions along with a variety of policies and procedures so we present a consistent approach to our supply base globally as one Regal Rexnord. Due to the diligence required, some of these changes will only be implemented over the first year or so. A few immediate changes we are making are: 1. Adopting the Regal supplier terms and conditions; 2. Implementing Regal’s standard payment terms and or various supplier financing options; 3. Immediate reconciliation of any rate differentials to the lowest common denominator. For the latter two items, your respective category manager will discuss with you. If you are unable to accept any of these changes, please advise your category manager and we will keep this in consideration in our future planning.

We remain focused on continuing to deliver the most cost-effective, value driven products, services and technologies on which our customers depend. Maintaining close relationships with our suppliers is important to meeting that goal.

Thank you for your continued loyalty and support of Regal Rexnord.

Jay Paladugula
VP Corporate Global Supply Chain/Sourcing

  • A couple reasons we have decided to change our name and brand during this transaction:
    • Rexnord is a recognized global brand with an impeccable reputation around their quality product lines. We believe there is value in the brand and will add to our overall brand.
    • On a practical side, the Rexnord and PTS segment of products will comprise 60% of our revenue and deserves the appropriate visibility and naming convention that will drive our brand image going forward.

  • Although we have taken this opportunity to rename and rebrand our corporate entity as Regal Rexnord, there are no legal changes to our relationship. All purchase orders and contracts with our respective plants are valid and will be honored.

  • No changes are expected. Your key contacts in the plant, such as buyer/planners will continue to be your day to day contacts manage supply and demand requirements.
  • No immediate changes in ship points are expected.

  • Yes, there are no changes in invoicing and all payments will continue as-is.

  • While there are no immediate changes to supply today, we are actively looking to optimize our combined supply base and grow relationships with strategic suppliers best positioned to competitively support our consolidated supply chains. Our initial focus is on merging these two great enterprises to ensure business continuity for our mutual end customers, but we will be contacting you in the coming weeks to discuss options for longer term
  • We would highly recommend you continue to execute and perform to our high standards around quality, on-time-delivery and be proactive in bringing forward your cost reduction ideas.

  • Please continue to work with your existing Regal and or Rexnord representative as in the past. Phone numbers and email addresses have not changed.
  • As we further integrate our teams, your primary contact for our commercial relationship will be your category manager. They will reach out to you as promptly as possible to make introductions and discuss opportunities for growth.

  • Yes! As mentioned, as we continue our efforts to integrate our companies, we see great opportunities to consolidate our spend with our very best suppliers. Your category manager will contact you in the very near future to discuss opportunities for growth.

  • If you have not already done so, please assess any existing volume you currently supply to legacy Regal and Rexnord PMC and share back any initial perspectives on opportunities to reconcile rate and service differences for consideration. We are looking to strategically grow suppliers who are able to continue to perform at a high level of service while also renewing commitments to increasingly competitive offerings given the potential for additional scale.

Regal recognizes the importance of suppliers as partners to meet our customer's requirements. The documents found here outline our policies and expectations from our supplier.

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