Altra Acquisition To Expand Regal Rexnord’s Power Transmission Portfolio
“The addition of Altra will mark an important milestone in Regal Rexnord’s ongoing journey to become a higher-performing enterprise, and one with a more balanced portfolio of differentiated products and solutions that solve our customers’ challenges by “energy-efficiently converting power into motion,” said Regal Rexnord CEO Louis Pinkham.
Altra designs and manufactures a wide range of highly engineered motion control, automation, and power transmission solutions. The combined company's enhanced power transmission portfolio creates an even more compelling partner for distributors, and better positions Regal Rexnord to offer industrial powertrain solutions in a broader set of end markets.
"This acquisition opens up many new avenues for profitable growth. In particular, Altra's Automation & Specialty platform transforms our existing automation portfolio – namely ModSort and Automation Solutions (formerly Arrowhead) – into a meaningful, global automation solutions provider. The automation business has highly attractive growth prospects and margins, serving many markets that have anticipated secular growth tailwinds, including factory automation, medical, aerospace, and warehouse & logistics," Pinkham said.
"The transaction also significantly enhances our power transmission portfolio, in particular our industrial powertrain offering, by adding complementary products in brakes, gears, and clutches, while extending the number of end markets in which we actively participate. Both organizations prioritize integrity, customer success, continuous improvement and a passion to win. We share a commitment to teamwork, and a belief in the power of diversity, engagement & inclusion. For all these reasons, we are excited to welcome Altra associates to Regal Rexnord, and look forward to all that we can accomplish together once we complete the transaction,” Pinkham added.
Based in Braintree, Massachusetts, Altra has more than 9,000 associates and 47 production facilities in 17 countries around the world and generates $1.9 billion in sales. The acquisition is expected to accelerate digital strategy, better positioning Regal Rexnord for Industry 4.0, which will be critical to future product development efforts.