ROCKCRAWLER.com - Regal-Beloit Corporation Acquires Powertrax

BELOIT, WI - James L. Packard, CEO and Chairman of REGAL-BELOIT CORPORATION (AMEX:RBC) announced the Company’s purchase of certain assets relating to the Powertrax® Division of Vehicular Technologies, Costa Mesa, CA. The purchased assets include the entire Powertrax® differential product line inventory, as well as patents and other intellectual property.

The Powertrax® product line, with annual sales of approximately $3 million, is used for both off-road and high performance automotive and truck applications. Powertrax® devices attach to the ring and pinion and lock both axles together for extreme traction. Powertrax® patented technologies and advanced products have been developed to exceed even the most demanding vehicular requirements. Powertrax® no-slip traction systems are easy to install for do-it-yourselfers and are available for trucks (1/2 ton, 3/4 ton, 1 ton), Jeeps, SUV’s, RV’s, vans, cars, utility vehicles and heavy industrial/commercial equipment and performance vehicles.

Henry Knueppel, President of REGAL-BELOIT noted that the Powertrax® products and technology is an “ideal and synergistic fit” with the REGAL-BELOIT RICHMOND GEAR product line including high performance automotive ring and pinions, transmissions and other driveline products. RICHMOND GEAR, a division of REGAL-BELOIT, supplies drive train products to NASCAR, NHRA, IHRA and to the street car and off-road enthusiast. The Powertrax® assets and technology will join the RICHMOND GEAR operation in Liberty, South Carolina.

“While the size of this product line is not substantial today,” Knueppel continued, “we believe the product itself combined with the RICHMOND products and market channels will create rapid growth for our RICHMOND brand of drive train products.”

Packard commented, “REGAL-BELOIT is committed to expanding our business through the strategic acquisition of complementary and technically advanced product lines and businesses. The acquisition of these assets is REGAL-BELOIT’s fourth since June, 2000.” Other recent acquisitions include the Spiral Bevel Division of Philadelphia Gear, Thomson Technology, and LEESON Electric.