Baldor acquires power systems business of Rockwell Automation

Baldor doubles its size, adds Dodge and Reliance Electric brands

-- Modern Materials Handling, 11/8/2006

Baldor Electric Company will acquire the Dodge and Reliance Electric motor businesses from Rockwell Automation for $1.8 billion. The transaction, announced yesterday, is expected to be completed in the first quarter of 2007.

In a conference call with industry analysts, Baldor CEO John McFarland said the acquisition will more than double the size of his company, adding $1 billion in sales. It will also broaden Baldor’s product offering and its global manufacturing base.

“Baldor’s strength historically has been in small motors. We make a lot of small motors and a few large ones,” McFarland said. “Reliance is big in large motors and quite small in small motors, so the two companies fit together well.”

Baldor operates manufacturing facilities in the United States and the United Kingdom. The acquisition will add manufacturing locations in the United States, Canada, Mexico and China.

Founded in 1920 and headquartered in Fort Smith, Ark., Baldor manufactures industrial electric motors, drives and generators. With the acquisition of Dodge, the company enters the mechanical power transmission market.