BELOIT, Wis., Feb. 4, 2011 /PRNewswire/ --Regal Beloit
Corporation (NYSE: RBC) and A. O. Smith Corporation (NYSE: AOS)
announced today they each have received a request for additional
information and documentary material, commonly referred to as a
"second request," from the United States Department of Justice
regarding the sale of A. O. Smith's
Electrical Products Company to Regal Beloit.
The requests are part of the regulatory process under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended
(HSR Act) and will extend the waiting period under the HSR Act
until 30 days after both companies have substantially complied with
the requests. The requests may be subject to modifications
suggested by the companies provided the United States Department of
Justice agrees to the modifications. Regal Beloit and
A. O. Smith are in the process of
gathering information to respond to the requests and are working
cooperatively with the United States 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.
CAUTIONARY STATEMENT
Certain statements made in this press release are
"forward-looking statements" intended to qualify for the safe
harbor from liability established by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
based on management's expectations, beliefs, current assumptions
and projections. When used in this press release, words
such as "may," "will," "expect," "intend," "estimate,"
"anticipate," "believe," "should," "project" or "plan" or the
negative thereof or similar words are intended to identify
forward-looking statements. These forward-looking statements
are not guarantees of future performance and are subject to risks,
uncertainties, assumptions and other factors, some of which are
beyond our control, which could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements. Those factors include, but are not limited
to:
- economic changes in global markets where we do business, such
as reduced demand for the products we sell, weakness in the housing
and commercial real estate markets, currency exchange rates,
inflation rates, interest rates, recession, foreign government
policies and other external factors that we cannot control;
- fluctuations in commodity prices and raw material costs;
- cyclical downturns affecting the global market for capital
goods;
- our ability to timely and successfully consummate the
acquisition of the electrical products business of A.O. Smith ("EPC"), including the ability to
satisfy all of the conditions precedent to consummation of the
transaction;
- our ability to timely and successfully realize the potential
synergies of the EPC transaction;
- unexpected issues, costs or liabilities arising from the
acquisition and integration of EPC and other acquired companies and
businesses, or the effects of purchase accounting that may be
different than expected;
- marketplace acceptance of new and existing products including
the loss of, or a decline in business from, any significant
customers;
- the impact of capital market transactions that we may
effect;
- the availability and effectiveness of our information
technology systems;
- unanticipated costs associated with litigation, product
warranty or product liability matters;
- the effects of increased international and domestic competition
on sales of our energy efficient products;
- actions taken by our competitors, including new product
introductions or technological advances, and other events affecting
our industry and competitors;
- difficulties in staffing and managing foreign operations;
- other domestic and international economic and political factors
unrelated to our performance, such as the current substantial
weakness in economic and business conditions and the stock markets
as a whole; and
- other risks and uncertainties described from time to time in
our reports filed with the U.S. Securities and Exchange Commission,
or SEC, which are incorporated by reference.
Shareholders, potential investors, and other readers are urged
to consider these factors in evaluating the forward-looking
statements and cautioned not to place undue reliance on such
forward-looking statements. The forward-looking statements included
in this press release are made only as of the date of this press
release, and we undertake no obligation to update these statements
to reflect subsequent events or
circumstances. Additional information regarding these
and other risks and factors is included in Item 1A - Risk
Factors in our Annual Report on Form 10-K filed with the SEC on
March 2, 2010.
Regal Beloit Corporation is a leading manufacturer of mechanical
and electrical motion control and power generation products serving
markets throughout the world. Regal Beloit is headquartered
in Beloit, Wisconsin, and has
manufacturing, sales, and service facilities throughout
the United States, Canada, Mexico, Europe and Asia. Regal Beloit's common stock is a
component of the S&P Mid Cap 400 Index and the Russell 2000
Index.
SOURCE Regal Beloit Corporation