MRO Magazine

Rexnord to be acquired from Carlyle by Apollo Management for $1.8 billion

Milwaukee, WI -- Rexnord Corporation, a manufacturer of precision motion technology products, reports that an affil...


Milwaukee, WI — Rexnord Corporation, a manufacturer of precision motion technology products, reports that an affiliate of the private equity firm, Apollo Management, has signed an agreement to purchase RBS Global Inc., the corporate parent of Rexnord, for $1.825 billion, from private equity firm The Carlyle Group and management. The transaction is subject to government approvals and other customary conditions and is expected to close in the third calendar quarter of 2006.

Rexnord’s business is primarily focused on power transmission. The company manufacturers gears, couplings, industrial bearings, flattop chain and modular conveyor belts, a variety of special components, industrial chain and aerospace bearings and seals.

Rexnord’s products are used in plants and equipment in a range of industries, including aerospace, aggregates and cement, air handling, construction equipment, chemicals, energy, food and beverage, forest and wood products, mining, material and package handling, marine, natural resource extraction and petrochemical.

It has about 5,800 employees worldwide. Its products are sold around the world by over 300 direct sales representatives through a network of multiple service centres and warehouses backed by hundreds of independent stocking distributors. For more information, visit www.rexnord.com.

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George Sherman, Non-executive chairman of Rexnord, said: “Carlyle has been a supportive partner in positioning Rexnord to be a strategic player in the power transmission and aerospace industries and I look forward to working with Apollo to continue our growth trajectory.”

Bob Hitt, president and chief executive officer of Rexnord, said: “I am excited to have another high-quality owner to work with and support us as we enhance Rexnord’s leadership position in our industry.”

Praveen Jeyarajah, Carlyle managing director, said: “Rexnord has been an extraordinarily successful investment for us and we have enjoyed the opportunity to partner with George Sherman, Bob Hitt and the Rexnord management team.”

Larry Berg, a senior partner at Apollo Management, said: “Rexnord is a very attractive business platform, which combines strong market positions and exciting growth opportunities together with highly motivated and dedicated employees and an outstanding and proven management team. We look forward to working with all the people at Rexnord in continuing to grow the company.”

Apollo, founded in 1990, is among the most active and successful private investment firms in terms of both number of investment transactions completed and aggregate dollars invested. Since its inception, Apollo has invested over $16 billion in a wide variety of industries both domestically and internationally. The firm’s most recent private equity fund, Apollo Investment Fund VI, L.P. has capital commitments of $10.1 billion.

The Carlyle Group is a global private equity firm with $39 billion under management. Carlyle invests in buyouts, venture & growth capital, real estate and leveraged finance in Asia, Europe and North America, focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, healthcare, industrial, technology & business services and telecommunications & media. Since 1987, the firm has invested $18.1 billion of equity in 463 transactions for a total purchase price of $73.2 billion.