Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, February 26, 2021

Article Excerpt

REXNORD CORP., $44.95, symbol RXN on New York, currently operates two businesses: Process & Motion Control, which makes bearings, couplings and gears for several different industries, including utilities, mining, and aerospace; and Water Management, which provides advanced water solutions through its Zurn Industries and World Dryer units. All together, the company has 6,400 employees worldwide. On February 16, 2021, Rexnord announced that it was separating its Process & Motion Control business in a tax-free spinoff to shareholders. It will then merge that segment with Regal Beloit Corp.(symbol RBC on New York). It’s a Wisconsin-based maker of industrial gear, including electric motors, and power transmission and power generation components for the aerospace, food and building industries. Regal shareholders will own 61.4% of the merged entity, while Rexnord shareholders will own 38.6%. Regal will be led by its existing board of directors, with the addition of two new directors from the Rexnord board. Meanwhile, the combined firm will adopt the Rexnord name. Meanwhile, the remaining…