WEG acquires industrial electric motors and generators business

The acquisition value is $400 million, subject to common price adjustments for this type of transaction. 

This transaction focuses on the industrial electric motors and generators businesses of the Marathon, Cemp, and Rotor brands within the Industrial Systems operational segment of Regal Rexnord, a company headquartered in the US and listed on the New York Stock Exchange.

WEG will also integrate a team of approximately 2,800 employees operating in 10 factories located in seven countries (US, Mexico, China, India, Italy, the Netherlands, and Canada), as well as commercial subsidiaries in 11 countries. The net operating revenue of these businesses in 2022 was approximately R$ 2.8 billion ($ 541.5 million), with an adjusted EBITDA margin of 9.5%.

According to WEG's President, Harry Schmelzer Jr, this acquisition aligns with the strategy of continuous and sustainable growth, international expansion, and diversification of the industrial operations of the WEG Group.

"The geographical distribution of these operations complements WEG's current presence and will help achieve greater scale and cost efficiency as we integrate the new operations with the existing ones,” said Schmelzer Jr.

With a long history in the market and a global presence, this acquisition will support the ongoing growth of the WEG Group in the industrial electric motors and generators markets, through the incorporation of recognised brands and a product line that complements the Group's current portfolio.

The completion of the transaction is subject to the fulfilment of certain conditions precedent, including the necessary regulatory approvals related to the transaction.