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SNTech buys Regal Beloitís pool motors business

25 August, 2011

The Arizona-based electric motor manufacturer SNTech is buying is buying a line of pump motors from Regal Beloit for an undisclosed sum. The deal follows a US Department of Justice ruling that Regal Beloit must sell its business making motors for pool and spa pumps in order to proceed with its $875m acquisition of AO Smith’s electric motors business.

The North American part of Regal Beloit’s AO Smith acquisition – which was announced last December – was completed on 17 August. The Chinese part of the acquisition is awaiting administrative approvals, which are expected soon.

Regal Beloit will keep AO Smith’s pool and spa motors business.

Regal Beloit’s CEO, Mark Glebe (above), describes the AO Smith acquisition as “a defining moment” for his corporation. “The combination will add technology to the company, grow our global footprint and result in meaningful synergies. More importantly, we believe that combining the two businesses will allow us to bring incremental value to our customers with new energy saving products, a broader product offering and better operating efficiencies.”

The acquired business – previously AO Smith’s Electrical Products Company – has motor manufacturing operations in the US, Mexico, China and the UK.

SNTech, located in Phoenix, specialises in designing, manufacturing and distributing efficient electronically commutated motors. It has customers in the US, Europe and Asia. The acquisition of the Regal Beloit products will make it a major supplier to the pool and spa market. Last year, the acquired business generated a profit of $4.2m for Regal Beloit from sales worth $23.4m.

“Now, we can accelerate our plans to bring more highly energy-efficient motors to the mainstream market,” says SNTech CEO, Shannon Bard. “SNTech is already supplying motors to original equipment manufacturers, distributors and contractors in other categories, so we`re confident that we`ll maintain a smooth transition with the companies that have been served by Regal Beloit.

“Because of this acquisition, SNTech will be able to create efficiencies which will continue to drive down the cost of producing all of the motors in our product lines," he adds.

SNTech manufactures its motors in Searcy, Arkansas, and plans to produce its new lines of pool and spa motors at the same site.

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