Regal rexnord corporation completes acquisition of altra industrial motion corp.
Positions regal rexnord for accelerated growth, higher margins, stronger free cash flow and higher roic by enhancing its value proposition with key stakeholders transforms regal rexnord's automation portfolio into a meaningful, global automation solutions provider, with over 70% of its sales into markets with secular growth tailwinds combines complementary power transmission portfolios to deliver enhanced industrial powertrain solutions for customers portfolio to be comprised of four segments: industrial powertrain solutions ("ips", ~37% of pro forma 2022 sales), power efficiency solutions ("pes", ~31%), automation & motion control ("amc", ~24%) and industrial systems ("is", ~8%) unites aligned cultures with deep commitments to serving customers and infuses significant new talent into the organization to support growth and margin enhancement initiatives affirm anticipated annualized cost synergies of $160 million by year four, plus significant cross-marketing revenue opportunities expect net debt/adjusted ebitda at or below previously communicated target of 3.9x by the end of 2q 2023, in a range of 2.5-3.0x in 2024, and below 2.5x in 2025 affirm 2023 guidance for legacy regal rexnord, including gaap diluted eps in a range of $5.64 to $6.44 and adjusted diluted eps in a range of $10.05 to $10.85 reiterate pro forma targets for 2025 revenue of ~$8.3 billion, adjusted gross margin of ~40%, adjusted ebitda margins >25%, adjusted eps of ~$18, and annual free cash flow ~$1.1 billion and $1.4 billion in 2026 beloit, wis. , march 27, 2023 /prnewswire/ -- today, regal rexnord corporation (nyse: rrx) announced it has completed the acquisition of altra industrial motion corp. (nasdaq: aimc), closing the deal that was signed on october 26, 2022.
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