Regal Rexnord Stock

Regal Rexnord Corporation is a global leader in the engineering and manufacturing of factory automation sub-systems, industrial powertrain solutions, automation and mechanical power transmission components, electric motors and electronic controls, air moving products and specialty electrical components and systems, serving customers around the world. The company has manufacturing, sales and service facilities worldwide.

Segments

The company operates through four segments: Industrial Powertrain Solutions (IPS), Power Efficiency Solutions (PES), Automation & Motion Control (AMC) and Industrial Systems.

IPS consists of the majority of the company's previous Motion Control Solutions (MCS) segment, excluding the conveying and aerospace business units, plus Altra's Power Transmission Technologies segment. The IPS segment designs, produces and services mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes and gear motors, clutches, brakes, special components products and industrial powertrain components and solutions serving a broad range of markets, including food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf & garden and general industrial.

PES consists of the company's previous Climate Solutions and Commercial Systems segments. The PES segment designs and produces fractional to approximately 5 horsepower AC and DC motors, electronic variable speed controls, air moving solutions, and blowers for applications, spanning several markets, including residential and commercial HVAC, water heaters, commercial refrigeration, commercial building ventilation, pool and spa, irrigation, agriculture, conveying and general commercial equipment.

AMC consists of the company's previous MCS aerospace and conveying business units, Altra's Automation & Specialty segment and the Thomson Power Systems business that was previously in the company's Industrial Systems segment. The AMC segment designs, produces and services conveyor products, conveying automation subsystems, aerospace components, rotary precision motion solutions, high-efficiency miniature motors and motion control products, automation transfer switches, switchgear for industrial applications and automation systems that enable and control the transition of rotary motion to linear motion. These products serve markets including material handling, aerospace and defense, factory automation, data centers, medical device, packaging, printing, semiconductor, robotic, industrial power tool, mobile off-highway, food & beverage processing and other applications.

Industrial Systems consists of the company's previous Industrial Systems segment excluding the Thomson Power Systems business. The Industrial Systems segment designs and produces integral motors, alternators for industrial applications, along with aftermarket parts and kits to support such products. These products serve markets, including agriculture, marine, mining, oil and gas, food and beverage, data centers, prime and standby power, and general industrial equipment.

Strategy

The company seeks to create value for its key stakeholders - its customers, its shareholders and its associates - by accelerating profitable growth. The key elements of the company's strategy include deploying the Regal Rexnord Business System (RBS); raising its exposure to markets with secular growth tailwinds; providing a broader offering of increasingly robust sub-systems; utilizing its flexible global manufacturing presence; realizing synergies from its M&A transactions; and ongoing portfolio assessment.

Sales, Marketing and Distribution

The company sells its products directly to original equipment manufacturers (OEMs), distributors and end-users. The company has multiple divisions that promote its brands across their respective sales organizations. These sales organizations consist of varying combinations of the company's own internal direct sales people, as well as exclusive and non-exclusive manufacturers' representative organizations.

The company operates large distribution facilities in Plainfield, Indiana; El Paso and McAllen, Texas; LaVergne, Tennessee; Florence, Kentucky; and Monterrey, Mexico which serve as hubs for its North American distribution and logistics operations. Products are shipped from these facilities to the company's customers utilizing common carriers. The company also operates or partners with numerous warehouse and distribution facilities in its global markets to service the needs of its customers. In addition, the company has select manufacturer representatives' warehouses located in specific geographic areas to serve local customers.

The company derives a significant portion of revenue from its OEM customers. Certain portions of the company's sales are to key OEM customers which makes its relationship with each of these customers important to its business. The company has long standing relationships with these customers and it expects these customer relationships will continue for the foreseeable future.

History

Regal Rexnord Corporation, formerly known as Regal Beloit Corporation, was founded in 1955.