Rexnord Buys Falk for $295 Million
Rexnord Corp. announced today that it has entered into a definitive agreement to purchase The Falk Corp. from Hamilton Sundstrand, a subsidiary of United Technologies Corp., for $295 million. The transaction is expected to close in the second quarter of 2005.
Rexnord Corp., headquartered in Milwaukee, WI, is a worldwide manufacturer of mechanical power transmission components with revenues of approximately $800 million. Falk Corp., also headquartered in Milwaukee, is a manufacturer of gears and couplings, with annual revenues of approximately $200 million.
"By combining two succesful companies that have complementary products and technologies, we create a bigger, stronger business with combined annual revenues of in excess of $1 billion," said Robert Hitt,Rexnords CEO in the companys press release. "This acquisition is consistent with Rexnords growth strategy, enhancing our capabities and allowing us to better serve our customers."
"Falk Corp. has a strong market presence with substantial brand equity and a significant installed base," said Dave Doerr, president of Falk Corp. "Falk looks forward to joining with Rexnord to offer our customers the best solutions to their power transmission needs."