On May 6, 2024, Regal Rexnord (” Recoda “) Group (NYSE: RRX) announced that it has officially completed its previously announced acquisition of WEG S.A. (B3: WEGE3 /OTC) : The transaction in which WEGZY and its subsidiaries sold the Industrial motor and generator business of industrial Systems.
Since September 2023, the Regal Rexnord Group has announced the sale of its industrial motor and generator business to WEG, the world’s second largest manufacturer of low-voltage AC motors, for $400 million.

XV-303-15-C02-A00-1B The sale includes the majority of the business of Recoda’s Industrial Systems division, namely the Marathon, Cemp and Rotor brands. While Recoda will continue to operate its commercial motor business, the move means the company has withdrawn from the low-voltage motor market.

Instead, WEG, which has rapidly expanded its share of the low-voltage motor market in recent years, will add hundreds of millions of dollars to its motor business through one of the largest acquisitions in the market this decade.

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Headquartered in Brazil, WEG has been in the NEMA market for many years due to geographical reasons. The acquisition of Marathon Motor mainly focuses on Marthon motor’s market share in North America and strengthens its position in the low-voltage motor market in the North American market.

In the Chinese market, due to the high degree of product overlap between WEG and Marathon, and the two brands are major competitors in the paper and compressor industries, the integration of the domestic business is quite difficult and requires a high degree of skill.

XV-303-15-C02-A00-1B WEG will benefit from the unexpected acquisition of Marathon’s small and medium-sized generator and high-speed motor business, which is well known in the industry and is widely used in Marine, land temporary power plants, data centers, and Cummins (formerly Stanford, acquired by Cummins). LEROY-SOMER (acquired by Nidec) ranks among the world’s top three generators. The successful acquisition of WEG will usher in new changes to the motor market.