RRX - Regal Rexnord to acquire Altra Industrial Motion for $62/share all-cash deal

• Regal Rexnord ( NYSE: RRX ) has agreed to acquire Altra Industrial Motion ( NASDAQ: AIMC ) in an all cash transaction for $62.00 per share.
• Subject to the receipt of regulatory approvals, Altra shareholder approval, and the satisfaction of other customary closing conditions, the transaction values Altra at $4.95B and is expected to close in the first half of 2023.
• Altra manufactures a wide range of motion control, automation, and power transmission solutions.
• The deal expands Regal's ( RRX ) portfolio, customer reach, and product diversity while enabling the creation of shareholder value through enhanced growth and substantial cost synergies.
• With the addition of Altra, Regal ( RRX ) expects 2022 pro forma revenue of ~$7.2B, adj. EBITDA of ~$1.5B, and an adj. EBITDA margin of ~21%.
• Based on the growth and margin outlook for the combined business, and after including $160M in annualized run rate cost synergies, Regal ( RRX ) targets 2025 pro forma revenue of ~$8.3B, 2025 adj. EBITDA of ~$2.1B, and an adj. EBITDA margin greater than 25%.

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