Regal Rexnord Corporation has announced it has closed the previously announced sale of its Industrial Motors and Generators business that comprises the substantial majority of its Industrial Systems segment to certain subsidiaries of WEG S.A.
The company closed the transaction for total consideration of $400 million, approximately 17% of which is deferred and will be paid upon the completion of the China Business transfer. The total consideration remains subject to taxes, transaction expenses, working capital adjustments and customary post-closing adjustments. The company anticipates that aggregate net proceeds will approximate $355 million.
As previously disclosed, the company intends to use the aggregate net proceeds from the transaction to reduce its debt, which in combination with deploying the majority of its forecasted 2024 free cash flow to debt reduction, should enable the company to repay most of its variable interest rate debt by the end of 2024.
