| || US firm to sell mechanical and motor business |
20th July, 2006
Process-manufacturing speci-alist Rockwell Automation in June announced its plan to sell the com- pany?s Dodge mechanical and Reliance Electric motors and motor repair-services businesses. Release link: http://www.miningweekly.co.za/min/news/features/?show=89454
These are leading producers of mechanical power-transmission products and industrial motors, and are the principal businesses of the company?s Power Systems reporting segment. Rockwell Automation will retain the Reliance Electric and Reliance branded drives and related parts and services as an integral part of its global drives and customer-service businesses.
The Dodge and Reliance Electric businesses, headquartered in Green- ville, South Carolina, contribute substantially to the revenue gene- rated by Power Systems.
For fiscal year 2006, this segment is forecast to generate about $1-billion in revenue and segment operating margins of around 15%.
Rockwell Automation chair- person and CEO Keith D Nosbusch says, ?Power Systems is a great business with an outstanding management team, strong domain expertise, and leading market positions. It has contributed substantially to Rockwell Automation?s growth and success. ?In their areas of strength, the Dodge and Reliance Electric businesses are unbeatable. ?We believe that they will benefit from ownership dedicated to investing and globalising to sustain their growth as the premier providers of power transmission and conversion solutions.? Joseph D Swann, president of Rockwell Automation Power Systems, says, ?We are enthusiastic about the road ahead, and remain intensely focused on serving our customers, both directly and with the support of our distribution partners.
?We are proud of what our team at Power Systems has accomplished, and look forward to the continued growth and evolution of our business.? The company said that the transaction stems from Rockwell Automation?s ongoing efforts to enhance shareowner value but indicated that it does not expect the transaction to change its priorities for cash deployment, but that it would create an even greater focus on power and integrated control and information solutions to meet customers? business needs.
Rockwell Automation has retained Sagent Advisors Inc to advise on the sale process.
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