RBC Bearings Incorporated Completes Acquisition of ABB’s DODGE Mechanical Power Transmission Business

Rhea-AI Summary

RBC Bearings (NASDAQ: ROLL) has successfully completed its acquisition of the DODGE mechanical power transmission division from Asea Brown Boveri Ltd for $2.9 billion, subject to post-closing adjustments. This acquisition is expected to enhance RBC's market position in premium performance-critical bearings and motion control products across industrial, aerospace, and defense sectors. CEO Michael J. Hartnett expressed optimism about the integration of DODGE, highlighting potential synergies and benefits from the combined strengths of both companies.

Positive

• Strengthens market position in premium performance-critical bearings and components.
• Expected synergies from integrating DODGE into RBC Bearings' operations.

Negative

• Acquisition may involve unexpected costs and challenges related to integration.
• Increased debt obligations following the acquisition could strain financial resources.

OXFORD, Conn.--(BUSINESS WIRE)-- RBC Bearings Incorporated (Nasdaq: ROLL), a leading international manufacturer and marketer of highly engineered precision bearings and products for the industrial, defense and aerospace industries, announced today that it has completed its previously announced acquisition of the DODGE mechanical power transmission division of Asea Brown Boveri Ltd for approximately $2.9 billion in cash subject to post closing working capital adjustments.

Dr. Michael J. Hartnett, RBC Bearings’ Chairman and Chief Executive Officer, said “We are excited to welcome our DODGE teammates to the RBC Bearings’ family. The closing of this transaction is the first step to realizing the great benefits of this combination. I want to thank the teams at RBC Bearings, DODGE and ABB for their incredible efforts to complete the transaction and their pursuit of a smooth, swift integration that will allow us to begin benefitting from the strengths of the combined company.”

RBC Bearings, together with DODGE, creates a leading manufacturer with strong brand recognition for premium performance-critical bearings, components and motion control products for the industrial, aerospace and defense markets.

About RBC Bearings

RBC Bearings Incorporated is an international manufacturer and marketer of highly engineered precision bearings and components. Founded in 1919, the Company is primarily focused on producing highly technical or regulated bearing products and components requiring sophisticated design, testing and manufacturing capabilities for the diversified industrial, aerospace and defense markets. The Company is headquartered in Oxford, Connecticut.

Safe Harbor for Forward-Looking Statements

Certain statements in this press release contain “forward-looking statements.” All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including the following: outlooks; the expected benefits and synergies of the acquisition of DODGE; the impact of the acquisition on the market for RBC and DODGE products; the impact of the acquisition on the Company’s earnings; deleveraging following the closing of the acquisition; competitive position and opportunities; the timing and amount of free cash flow generation resulting from the acquisition; any projections of earnings, revenue or other financial items relating to the Company, any statement of the plans, strategies and objectives of management for future operations; any statements concerning proposed future growth rates in the markets we serve; any statements of belief; any characterization of and the Company’s ability to control contingent liabilities; anticipated trends in the Company’s businesses; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words “may,” “would,” “estimate,” “intend,” “continue,” “believe,” “expect,” “anticipate,” and other similar words. Although the Company believes that the expectations reflected in any forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties beyond the control of the Company. These risks and uncertainties include, but are not limited to, risks and uncertainties relating to the acquisition of DODGE (including risks relating to unexpected acquisition-related costs, charges or expenses, RBC’s ability to achieve the growth and synergies expected from the acquisition, and RBC’s ability to pay down the acquisition-related indebtedness), general economic conditions, the COVID-19 pandemic, geopolitical factors, future levels of general industrial manufacturing activity, future financial performance, market acceptance of new or enhanced versions of the Company’s products, the pricing of raw materials, changes in the competitive environments in which the Company’s businesses operate, the outcome of pending or future litigation and governmental proceedings and approvals, estimated legal costs, increases in interest rates, tax legislation and changes, the Company’s ability to meet its debt obligations, the Company’s ability to acquire and integrate complementary businesses, and risks and uncertainties listed or disclosed in the Company’s reports filed with the Securities and Exchange Commission, including, without limitation, the risks identified under the heading “Risk Factors” set forth in the Company’s most recent Annual Report filed on Form 10-K. The Company does not intend, and undertakes no obligation, to update or alter any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211101005853/en/

RBC Bearings

Robert M. Sullivan

203-267-5014

rsullivan@rbcbearings.com

Alpha IR Group

Michael Cummings

617-461-1101

investors@rbcbearings.com

Source: RBC Bearings Incorporated

FAQ

What was the acquisition cost for DODGE by RBC Bearings?

RBC Bearings acquired DODGE for approximately $2.9 billion in cash.

What is the strategic significance of the DODGE acquisition for RBC Bearings?

The acquisition enhances RBC's position in the industrial, aerospace, and defense markets by providing access to premium performance-critical products.

How might the DODGE acquisition affect RBC Bearings' earnings?

While the company anticipates benefits and synergies, there are risks of unexpected costs and the need to manage increased debt.

What are the expected benefits of integrating DODGE into RBC Bearings?

RBC anticipates leveraging DODGE's brand and capabilities to boost overall market performance and operational efficiency.

What are the risks associated with the acquisition of DODGE?

Risks include potential integration challenges, increased debt obligations, and unexpected costs related to the acquisition.