Privately held SNTech has acquired a $23.4 million electric motor business from Regal Beloit (NYSE:RBC), a move it hopes will catapult the company to a leadership position in the pool and spa motor industry.
The divestment was a perquisite imposed by the Justice Department for RBC to proceed with plans to acquire the electric motor business of industry giant A.O. Smith.
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SNTech, which is a Phoenix, Ariz.-based maker of highly energy-efficient electric motors, said the new addition to its portfolio positions it to become one of the major electric motor players in the pool and spa category.
Because of this acquisition, SNTech will be able to create efficiencies which will continue to drive down the cost of producing all of the motors in our product lines, SNTech chief Shannon Bard said in a statement. Now, we can accelerate our plans to bring more highly energy efficient motors to the mainstream market.
The company, which is backed by green energy investment group SAIL Capital Partners, plans to use one of its motor facilities in Searcy, Arkansas to manufacture the new lines.