We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Regal Beloit Trades as Regal Rexnord (RRX) Post Rexnord Deal
Read MoreHide Full Article
Regal Rexnord Corporation (RRX - Free Report) started trading on the NYSE from Oct 5, 2021. This happened after the completion of the combination of Rexnord Corporation’s Process & Motion Control (“PMC”) segment with Regal Beloit Corporation a day earlier.
Regal Beloit Corporation is now legally known as Regal Rexnord Corporation. Also, Rexnord Corporation now has a new legal name of Zurn Water Solutions Corporation (ZWS - Free Report) . It too started trading on the NYSE from Oct 5.
Regal Rexnord’s shares ended the trading session at $138.13 yesterday, reflecting a decline of 1.40% over the previous day’s session. Shares of Zurn Water Solutions gained 2.42% yesterday, ending the trading session at $33.85.
Insight into Related Events
The business combination deal was signed between Regal Beloit and Rexnord in February 2021. The total consideration involved in this was $3.69 billion.
Per the agreed terms, Rexnord initially distributed shares of Land Newco, Inc. to its shareholders in the form of a pro-rata dividend. Land Newco was the wholly-owned subsidiary of Rexnord and the owner of the PMC business. The record date of the pro-rata dividend was Sep 29, 2021, and the payment date was Oct 4. The process resulted in the spin-off of Land Newco.
Post this, Regal Beloit acquired Land Newco in a stock transaction (the exchange ratio being 0.2230). Land Newco became a wholly-owned subsidiary of Regal Beloit with the completion of the stock transaction. It then changed its legal name to Regal Rexnord. Shareholders of Regal Beloit of record as of Oct 1 were rewarded with a payment of a special cash dividend of $6.99 per share on Oct 5.
Of Regal Rexnord’s total shareholdings, 61.4% is owned by shareholders of Regal Beloit and the rest 38.6% are with shareholders of Rexnord. Regal Rexnord’s business segments are Motion Control Solutions (including Regal Beloit’s Power Transmission Solutions and Rexnord’s PMC businesses), Commercial Systems, Climate Solutions, and Industrial Systems.
Regal Rexnord is equipped to offer an enhanced product line (with expertise in industrial powertrain solutions, electronic motors, power transmission components and others), market presence, free cash flow, and shareholders’ value. It will be positioned as a major provider of power transmission solutions. In 2022, Regal Rexnord anticipates revenues of $5 billion and adjusted earnings before interest, tax, depreciation and amortization of at least $1 billion. In the three years of the formation, Regal Rexnord anticipates cost synergies of $120 million.
Zacks Rank, Price Performance and Earnings Estimates
Regal Rexnord currently carries a Zacks Rank #3 (Hold). In the past three months, the company’s shares gained 8% against the industry’s decline of 5.4%.
Past Three-Months Price Performance
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for the company’s earnings is pegged at $8.81 for 2021 and $9.85 for 2022, reflecting no change in the past seven days. The consensus estimate for the third quarter of 2021 too is unchanged at $2.34.
Image: Bigstock
Regal Beloit Trades as Regal Rexnord (RRX) Post Rexnord Deal
Regal Rexnord Corporation (RRX - Free Report) started trading on the NYSE from Oct 5, 2021. This happened after the completion of the combination of Rexnord Corporation’s Process & Motion Control (“PMC”) segment with Regal Beloit Corporation a day earlier.
Regal Beloit Corporation is now legally known as Regal Rexnord Corporation. Also, Rexnord Corporation now has a new legal name of Zurn Water Solutions Corporation (ZWS - Free Report) . It too started trading on the NYSE from Oct 5.
Regal Rexnord’s shares ended the trading session at $138.13 yesterday, reflecting a decline of 1.40% over the previous day’s session. Shares of Zurn Water Solutions gained 2.42% yesterday, ending the trading session at $33.85.
Insight into Related Events
The business combination deal was signed between Regal Beloit and Rexnord in February 2021. The total consideration involved in this was $3.69 billion.
Per the agreed terms, Rexnord initially distributed shares of Land Newco, Inc. to its shareholders in the form of a pro-rata dividend. Land Newco was the wholly-owned subsidiary of Rexnord and the owner of the PMC business. The record date of the pro-rata dividend was Sep 29, 2021, and the payment date was Oct 4. The process resulted in the spin-off of Land Newco.
Post this, Regal Beloit acquired Land Newco in a stock transaction (the exchange ratio being 0.2230). Land Newco became a wholly-owned subsidiary of Regal Beloit with the completion of the stock transaction. It then changed its legal name to Regal Rexnord. Shareholders of Regal Beloit of record as of Oct 1 were rewarded with a payment of a special cash dividend of $6.99 per share on Oct 5.
Of Regal Rexnord’s total shareholdings, 61.4% is owned by shareholders of Regal Beloit and the rest 38.6% are with shareholders of Rexnord. Regal Rexnord’s business segments are Motion Control Solutions (including Regal Beloit’s Power Transmission Solutions and Rexnord’s PMC businesses), Commercial Systems, Climate Solutions, and Industrial Systems.
Regal Rexnord is equipped to offer an enhanced product line (with expertise in industrial powertrain solutions, electronic motors, power transmission components and others), market presence, free cash flow, and shareholders’ value. It will be positioned as a major provider of power transmission solutions. In 2022, Regal Rexnord anticipates revenues of $5 billion and adjusted earnings before interest, tax, depreciation and amortization of at least $1 billion. In the three years of the formation, Regal Rexnord anticipates cost synergies of $120 million.
Zacks Rank, Price Performance and Earnings Estimates
Regal Rexnord currently carries a Zacks Rank #3 (Hold). In the past three months, the company’s shares gained 8% against the industry’s decline of 5.4%.
Past Three-Months Price Performance
The Zacks Consensus Estimate for the company’s earnings is pegged at $8.81 for 2021 and $9.85 for 2022, reflecting no change in the past seven days. The consensus estimate for the third quarter of 2021 too is unchanged at $2.34.
Stocks to Consider
Two better-ranked stocks in the industry are The LGL Group, Inc. (LGL - Free Report) and SPX FLOW, Inc. (FLOW - Free Report) . Both companies presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. In the past 60 days, earnings estimates for these companies have improved for the current year.