Rockwell Automation Sells Motor and Motor Repair Business
April 21, 2006—Rockwell Automation Inc. announced plans to sell its Dodge mechanical and Reliance Electric motors and motor repair services businesses.
These producers of mechanical power transmission products and industrial motors are the principal businesses of the company's power systems reporting segment.
Rockwell plans to retain Reliance Electric and Reliance branded drives and related parts and services as part of its global drives and customer service businesses.
Dodge and Reliance Electric, headquartered in Greenville, SC, are forecasted to generate $1 billion in revenue for 2006 and segment operating margins of approximately 15%.
This transaction stems from Rockwell's ongoing efforts to enhance shareholder value. Rockwell does not expect this transaction to change its priorities for cash deployment but will create a greater focus on power and integrated control and information solutions.