FORT SMITH, Ark., Sept. 2 AR-Baldor-gets-Maska
FORT SMITH, Ark., Sept. 2 /PRNewswire-FirstCall/ -- Baldor Electric
Company (NYSE: BEZ) markets, designs, and manufactures industrial electric
motors, power transmission products, drives, and generators and is based in
Fort Smith, Arkansas. Today Baldor announced that it has acquired Poulies
Maska, Inc. of Ste-Claire, Quebec, Canada.
Maska is a designer, manufacturer and marketer of sheaves, bushings,
couplings and related mechanical power transmission components. They have 180
employees primarily located in Canada and a new facility in China. Maska's
2007 sales were approximately $33 million.
John McFarland, Chairman and CEO of Baldor said, "We are excited to
announce the addition of Maska to our line of mechanical power transmission
products. Over the past 5 years the management team at Maska has increased
sales and profits by nearly 50%. Their two automated and efficient facilities
produce a large variety and some of the highest quality products available in
the marketplace. Maska's sheaves and bushings complement our Dodge line with
each having success in different parts of the market."
Benefits of the transaction include:
-- Operating and gross margins significantly exceed Baldor's overall
margins
-- Gives Baldor a second plant in China to support international growth
-- Results in leading market share of sheaves and bushings in North
America
-- Accretive to Baldor's earnings by approximately $0.03 per year,
excluding synergies
The transaction was funded by cash and an existing credit facility.
Additional terms were not disclosed.
This document contains statements that are forward-looking, i.e. not
historical facts. The forward-looking statements contained in this document
(including but not limited to "will" and "believe") are based on the Company's
current expectations and some of them are subject to risks and uncertainties.
Accordingly, you are cautioned that any such forward looking statements are
not guarantees of future performance and involve risks and uncertainties, and
that actual results may differ materially from those projected in the forward
looking statements as a result of various factors. The factors that might
cause such differences include, among others, the following: (i) changes in
economic conditions, (ii) developments or new initiatives by our competitors
in the markets in which we compete, (iii) fluctuations in the costs of select
raw materials, (iv) the success in increasing sales and maintaining or
improving the operating margins of the Company, and (v) other factors
including those identified in the Company's filings made from time-to-time
with the Securities and Exchange Commission. These statements should be read
in conjunction with the Company's most recent annual report (as well as the
Company's Form 10-K and other reports filed with the Securities and Exchange
Commission) containing a discussion of the Company's business and of various
factors that may affect it.
SOURCE Baldor Electric Company
