Rexnord Sold to Apollo for $1.8 Billion

Apollo Management LP bought Rexnord Corp. from The Carlyle Group for $1.825 billion. The Carlyle Group announced the transaction on their website May 25 and stated that the deal is subject to government approvals and other customary conditions and is expected to close in the third calendar quarter of 2006. Rexnord is a manufacturer of precision motion technology products, primarily focused on power transmission. The company manufactures gears, couplings, industrial bearings, flattop chain and modular conveyor belts, a variety of special components, industrial chains, and aerospace bearings and steels. Terms of the transaction were not disclosed. Larry Berg, a senior partner at Apollo Management says, "Rexnord is a very attractive business platform which combines strong market position and exciting growth opportunities together with highly motivated and dedicated employees and an outstanding management team".