Rexnord executives said the $5 billion deal would transform its automation lineup.
Motor and power equipment manufacturer Regal Rexnord on Thursday announced an agreement to acquire Altra Industrial Motion for nearly $5 billion.
The Wisconsin-based company said the deal would transform its automation and industrial motion portfolio as demand for advanced manufacturing technologies soars amid a tight labor market.
Under the agreement, Rexnord would pay $62 per share in cash for Altra, which would value the suburban Boston company at an estimated $4.95 billion.
Rexnord officials also touted the deal’s impact on its power transmission lineup, its research and development practices, and its operating efficiency.
“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 and logistics,” Regal Rexnord CEO Louis Pinkham said in a statement.
Altra Chairman and CEO Carl Christenson added that he was proud of what the company has become and confident that it “will have a great home” at Rexnord.
The transaction has already been approved by Altra’s board. It is scheduled to close early next year, provided it is OK’d by Altra shareholders and antitrust regulators.