Oxford-based RBC Bearings announced Tuesday it would buy the DODGE mechanical power transmission division of Asea Brown Boveri Ltd for $2.9 billion in cash.
DODGE, located in Greenville, South Carolina, makes mounted bearings and mechanical products and will add to RBC’s portfolio of highly engineered precision bearings and components for the industrial, defense and aerospace industries.
The combination of the two businesses will generate “strong synergies across all aspects of the business enterprise capable of reaching $70 million to $100 million annually by the fifth year,” RBC said in a statement.
RBC Bearings President and Chief Executive Officer Michael J. Hartnett said the combination will “enhance RBC Bearings’ capabilities, footprint and customer base,” while increasing its access to DODGE’s attractive end markets.
“The combined company will have an attractive position in the aerospace, defense and industrial markets with a diversified client base and expansive geographic footprint,” Hartnett said.
DODGE generated revenue of approximately $617 million and adjusted EBITDA of approximately $174 million, representing an adjusted EBITDA margin of 28%, for the 12 months ended June 30, 2021, according to the statement.
Goldman Sachs & Co. LLC served as the exclusive financial advisor to RBC Bearings and Goldman Sachs Bank USA provided committed financing for the transaction.
Contact Liese Klein at lklein@newhavenbiz.com.
