Baldor sells Reliance repairs business to private equity firm
Baldor has sold the repairs and maintenance part of the Reliance Electric business which it acquired for $1.8bn from Rockwell Automation earlier this year. The new owner of the Integrated Power Services (IPS) operation is the US-based private equity firm, The Riverside Company. The terms for the deal have not been disclosed.
Baldor says that the IPS operation competes with some of its existing customers and that it never intended to keep this part of the acquisition. The business represented less than 4% of Baldor’s annual revenues.
IPS provides diagnostic support, repair and maintenance services for electric motors and rotating mechanical power transmission products from 11 locations in the US, with its headquarters being located in South Carolina. It has around 1,400 customers and its annual revenue is about $70m.
Riverside partner Tim Gosline sees opportunities to expand IPS organically with enhanced service offerings and through add-ons. He says IPS will grow "by developing new relationships with additional OEMs and that have limited or no internal repair networks".
Baldor says that the proceeds from the IPS sale will be used toi reduce debt, and it doesn’t expect the sale to have much effect on its balance sheet or results.
