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Ⓡ REGAL REXNORD FOR RELEASE ON : February 16 , 2021 NEWS RELEASE REGAL TO COMBINE WITH REXNORD'S PMC SEGMENT , CREATING WORLD - CLASS POWER TRANSMISSION PROVIDER • • • • Combines complementary best - in - class power transmission portfolios to deliver more complete drive train solutions for customers Re - balances Regal portfolio between Power Transmission ( 47 % of pro forma sales ) , Motors ( 38 % ) , and Niche / Specialty Products ( 15 % ) Increases end market and geographic diversity Accelerates R & D and new product development ; enhances digital service and IIOT capabilities Creates compelling value for shareholders with attractive financial returns and new growth opportunities Anticipated annualized cost synergies of $ 120 million by year three , significant revenue cross - marketing opportunities and a strong balance sheet Unites aligned cultures with deep commitment to 80/20 and LEAN principles BELOIT , WI , & MILWAUKEE , WI , February 16 , 2021 - Regal Beloit Corporation ( NYSE : RBC ) and Rexnord Corporation ( NYSE : RXN ) today announced that they have reached a definitive agreement whereby Rexnord will separate its Process & Motion Control ( " PMC ” ) segment by way of a tax - free spin - off to Rexnord shareholders and then immediately combine it with Regal in a Reverse Morris Trust ( " RMT " ) transaction . Regal shareholders will own 61.4 % and Rexnord shareholders will own 38.6 % of the combined entity ( " New Regal " ) , before a potential dividend to Regal shareholders and a corresponding ownership adjustment to Rexnord shareholders , sized at closing to ensure that RMT ownership requirements are met . Rexnord shareholders will continue to own 100 % of the businesses ' Water Management platform . With the addition of PMC , Regal's 2020 pro forma revenue was approximately $ 4.1 billion with Adjusted EBITDA of $ 740 million , excluding $ 120 million in annualized cost synergies expected to be achieved by year three after closing . The pro forma 2020 EBITDA margin was approximately 18 % . The transaction combines Regal and PMC's best - in - class power transmission portfolios to drive innovation in industrial power transmission and motion control solutions through superior engineering , technology , and manufacturing capabilities . PMC is a world - class provider of specialized , highly - engineered power transmission components and solutions , with a strong portfolio of Industrial Internet of Things ( " IIOT " ) solutions . The transaction expands Regal's portfolio , customer reach , and product diversity while creating shareholder value through enhanced growth and substantial cost synergies . " This transformative combination brings together two highly complementary businesses , creating a premier provider of power transmission products , poised to deliver enhanced value for our customers , associates , and shareholders , " said Regal CEO , Louis Pinkham . " Combining with PMC accelerates our transformation momentum and is an important step towards our vision to accelerate profitable growth . We believe this transaction will create meaningful value for customers by providing comprehensive solutions across the entire industrial drive train , increased portfolio and reach , and an enhanced presence in diverse and attractive end markets and geographies . Shareholders will