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Company Interview Excerpt
Regal Beloit - David A. Barta


Full article published: 01/11/2010


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TWST: Would you begin with a brief historical sketch of the company and a summary of what you're presently doing?
Mr. Barta: The company was founded in 1955 by three entrepreneurs that had an idea on how to build a better business than where they worked. And I think that's important because that entrepreneurial attitude has really stuck with the company throughout its over-50-year history. We started out as an industrial cutting tool company. In the 1970s, they wanted to grow a little bit faster; they moved into mechanical power transmission products. That provided a nice level of growth for the company until the 1990s. During the 1990s, they were looking for the next avenue of growth. And in 1997, they decided to move into electric motors, given that they were complementary to the mechanical power transmission products that the company had been selling. They bought, at the time, Marathon Motors and doubled the size of the company. That really started the new era of the company being a more diversified company with electric motors, generators and power transmission products. There were a series of motor acquisitions in the 1997-2001 time frame, and we took a little bit of a break from acquisitions during the 2001 recession. We got back into the acquisition mode in 2004 by buying two divisions, motor businesses from General Electric. We doubled the size of the company again in 2004 through those acquisitions. And then over the last 36 months or so, we've had another eight or so acquisitions. Last year, we finished the year with sales of 2.2 billion, and the majority of that is electric motors, followed by mechanical power transmission products and then electric generators. We are a global company, and one of the key initiatives of the company was to globalize. In last five years, we've moved 30% of our sales outside of the U.S., and about 70% of our employees now are outside of the U.S. Today we feel like we're a significant industry participator in electric motors in the U.S., Europe and Asia, and we have a very diverse manufacturing footprint to support that diversification. We're technology oriented in the products that we sell, and we like to bring technology solutions to our customers.

 

Tickers included in this excerpt: RBC

 

For more information call (212) 952 7433. The Wall Street Transcript does not endorse any of the comments made by interviewees, and does not make stock recommendations.