BREAKING NEWS: Baldor to acquire Rockwell Power Systems business

11/07/2006


Baldor chairman and CEO John McFarland said he has always admired the Reliance and Dodge brands from afar. He now has a chance to get much better acquainted with them.

Baldor’s Nov. 7 announcement that it would acquire the two brands in Rockwell’s Power Systems division for $1.8 billion immediately doubled the size of Fort Smith, AR-based Baldor and diversified the company in the process. The deal, expected to close in early 2007, expands the company’s existing motors business and puts it into the power transmission business for the first time.

“I’ve long has respect for the way they operate in the market %%MDASSML%% the quality of their product and the quality of their people,” McFarland said. “Through this process, my respect for the company has really grown.”

The acquisition changes Baldor’s business in fundamental ways. Almost strictly a manufacturer of small industrial motors, Baldor gets Reliance’s large motors business and the power transmission business from Dodge. That will make power transmission 28% of Baldor’s expected sales in the future %%MDASSML%% a big change from not being in that market at all. Motors will now make up about 68% of Baldor’s sales while providing both large and small motors to its customers.

Another key is the existing manufacturing base Dodge has in China. “We’ve struggled with the issue of how to get into China,” McFarland said. “This gives us a platform for growth.”

Rockwell had announced its intention to sell off the Reliance and Dodge business units earlier this year. Both units are profitable, and McFarland said the chance to acquire strong companies with strong brands was attractive to Baldor.

“The two companies fit together well,” he said. “They all have strong brand preferences in the marketplace. It’s great to add such a powerful brand and company to the Baldor family.”

“Baldor is a great company with an outstanding management team,” said Keith D. Nosbusch, chairman and chief executive officer of Rockwell Automation. “I believe there is a compelling cultural and strategic fit between Baldor and our Reliance and Dodge businesses. Both organizations have similar operating philosophies and are committed to treating employees with respect, delivering high quality products and providing exceptional service to our customers. Power Systems will benefit significantly from ownership that is dedicated to investing on a global basis to create a leading motors and power transmission business.”

As part of Rockwell Automation, the Power Systems segment generated approximately $1 billion in revenue for the 12 months ending Sept. 30, 2006.





No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Prescriptive maintenance; Hannover Messe 2017 recap; Reduce welding errors
Safety standards and electrical test instruments; Product of the Year winners; Easy and safe electrical design
Safer human-robot collaboration; 2017 Maintenance Survey; Digital Training; Converting your lighting system
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
Automation modernization; Predictive analytics enable open connectivity; System integration success; Automation turns home brewer into brew house
Commissioning electrical systems; Designing emergency and standby generator systems; Paralleling switchgear generator systems
Natural gas for tomorrow's fleets; Colleges and universities moving to CHP; Power and steam and frozen foods

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
Compressed air plays a vital role in most manufacturing plants, and availability of compressed air is crucial to a wide variety of operations.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Maintenance Manager; California Oils Corp.
Associate, Electrical Engineering; Wood Harbinger
Control Systems Engineer; Robert Bosch Corp.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me