MILWAUKEE, Feb. 4, 2011 /PRNewswire/ -- A. O. Smith
Corporation (NYSE: AOS) and Regal Beloit Corporation (NYSE: RBC)
announced today they have each received a request for additional
information and documentary material from the U. S. Department of
Justice regarding the sale of A. O. Smith Electrical Products
Company to Regal Beloit.
The request will extend the waiting period under the
Hart-Scott-Rodino Antitrust Improvement Act of 1976 as amended
until 30 days after both companies have complied with the requests.
The request may be subject to modifications suggested by the
companies provided the Department of Justice agrees to the
modifications. A. O. Smith and Regal Beloit are in the
process of gathering information to respond to the requests and are
working cooperatively with the Department of Justice as it reviews
the proposed transaction.
A. O. Smith and Regal Beloit entered into the definitive
agreement to sell Electrical Products for $875 million on Dec. 12,
2010. Subject to regulatory approvals, the two
companies plan to close the sale during the first half of 2011.
Forward-looking statements
This release contains statements that the company believes are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements generally can be identified by the use of words such as
"may," "will," "expect," "intend," "estimate," "anticipate,"
"believe," "forecast," "guidance" or words of similar meaning.
These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those anticipated as of the date of this release.
Important factors that could cause actual results to differ
materially from these expectations include, among other things, the
following: the failure to receive, on a timely basis or otherwise,
the required approvals from the government or regulatory agencies
(including the terms of such approvals) pertaining to the sale of
Electrical Products Company; and the risk that a condition to
closing of the sale may not be satisfied; the ability to execute
our acquisition strategy; significant volatility in raw material
prices; competitive pressures on the company's businesses;
inability to implement pricing actions; negative impact of future
pension contributions on the company's ability to generate cash
flow; instability in the company's electric motor and water
products markets; further weakening in housing construction;
further weakening in commercial construction; timing of any
recoveries in housing or commercial construction; a slowdown in the
Chinese economy; adverse general economic conditions and capital
market deterioration; the impact of acquisition accounting or
non-GAAP financial measures on the company's financial statements;
difficulties in integrating the A. O. Smith (Shanghai) Water Treatment Products Co. Ltd.
acquisition or the North American tankless water heater venture;
difficulties in realizing future growth and profit expectations for
the A. O. Smith (Shanghai)
Water Treatment Products Co. Ltd. acquisition or the North American
tankless venture and potential negative impacts on the company that
the flooding of its Ashland City,
Tenn., water heater manufacturing plant may have.
Forward-looking statements included in this press release are made
only as of the date of this release, and the company is under no
obligation to update these statements to reflect subsequent events
or circumstances. All subsequent written and oral
forward-looking statements attributed to the company, or persons
acting on its behalf, are qualified entirely by these cautionary
statements. Forward-looking statements included in this press
release are made only as of the date of this release, and the
company is under no obligation to update these statements to
reflect subsequent events or circumstances. All subsequent
written and oral forward-looking statements attributed to the
company, or persons acting on its behalf, are qualified entirely by
these cautionary statements.
A. O. Smith Corporation, with headquarters in Milwaukee, Wis., is a global leader applying
innovative technology and energy-efficient solutions to products
marketed worldwide. The company is one of the world's leading
manufacturers of residential and commercial water heating
equipment, offering a comprehensive product line featuring the
best-known brands in North America
and China.
SOURCE A. O. Smith Corporation