Last week, leading global electric motors and drives group WEG SA based in Brazil announced that through its indirect subsidiaries abroad, the acquisition of the industrial electric motors and generators business of Regal Rexnord Corporation, a global manufacturer of electromechanical equipment. The acquisition value is $400 million, subject to common price adjustments for this type of transaction.
This transaction focuses on the industrial electric motors and generators businesses of the Marathon, Cemp, and Rotor brands within the Industrial Systems operational segment of Regal Rexnord, a company headquartered in the United States and listed on the New York Stock Exchange (NYSE).
WEG will also integrate a team of approximately 2,800 employees operating in 10 factories located in seven countries (United States, Mexico, China, India, Italy, the Netherlands, and Canada), as well as commercial subsidiaries in 11 countries. The net operating revenue of these businesses in 2022 was approximately $541.5 million, with an adjusted EBITDA margin of 9.5%.
According to WEG’s President, Harry Schmelzer Jr, this acquisition aligns with the strategy of continuous and sustainable growth, international expansion, and diversification of the industrial operations of the WEG Group. “The geographical distribution of these operations complements WEG’s current presence and will help achieve greater scale and cost efficiency as we integrate the new operations with the existing ones. With a long history in the market and a global presence, this acquisition will support the ongoing growth of the WEG Group in the industrial electric motors and generators markets, through the incorporation of recognised brands and a product line that complements the Group’s current portfolio. The completion of the transaction is subject to the fulfilment of certain conditions precedent, including the necessary regulatory approvals related to the transaction.
As an example, Regal Rexord’s Marathon brand is quite strong in mining – such as the Marathon TerraMAX TCM Mining Motors and Marathon XRI Severe Duty Mining Motors, which are low voltage series designed to meet the demands of mining applications, while delivering IE3 premium efficiency. Regal Rexnord has stated that both of these lines inherit the commitment of performance, quality and long lasting reliability of the global TerraMAX platform for the IEC and NEMA motors applications and at the same time present a tough and robust feature set to cater to the demanding application requirements of the mining industry. They are used widely in conveyor, mill, pump, crusher and other applications in mining.
The power range of the TCM Series and XRI severe duty motors covers 0.75 kW to 900 kW in voltages ranging from 200 V to 690 V for 50 Hz and 60 Hz operation. They are built from high grade cast iron with minimum 200 MPa tensile strength. The motor frame is designed using the latest analytical tools followed by due validation. The integral foot construction ensures that the alignment of the drive shaft and motor feet remain secured under all working conditions, including the starting and maximum power output demands. The fins on the body are designed to dissipate optimum amount of heat for the lowest airflow over the body corresponding to higher pole count, resulting in lower windage loss and therefore higher efficiency. The spacing between the fins is also optimised to prevent accumulation and build-up of dirt. The terminal box location is centralised for right or left mount position. Top box mount is optional. They are also manufactured with a AISI 1045 (C45) tensile strength shaft material. The design is suitable to provide strength and rigidity during operation. Bearing journals are ground to ensure an accurate bearing fit and positioning.
WEG’s own mining motors business is also seeing some big important orders. In June, it announced it is supplying 14 synchronous motors an important mining company in Chile’s Atacama region. The project will provide operational continuity to the useful life of the mining plant for the next 40 years or more, through open-pit exploitation of the remaining resources of the main deposit underground.
The scope of supply consists of replacing 14 synchronous motors used at the concentrator plant mills, of which five are 800 HP motors, 14-ton frame size 1120 and 9 are 1250 HP motors, 21-ton frame size 1400. Due to space restrictions, the company has chosen WEG synchronous motors to comply not only with the complex electrical project, but mainly to meet the demand for interchangeability with the same dimensions of the old motors in order to adapt to the site without making major modifications in the structure of the plant, whilst also adding important improvements for the maintenance and protection of the site.
