WEG informed the market of the purchase of the industrial electric motors and generators businesses of the American Regal Rexnord Corporation. The acquisition made by the Santa Catarina industry giant, based in Jaraguá do Sul, was announced in September last year.
SC multinational acquires American giant for R$2 billion – Photo: WEG/Divulgação/ND
The value of the deal was 400 million dollars, around R$1.98 billion, according to the dollar exchange rate at the time. According to WEG, the net operating revenue of the businesses acquired from Regal Rexnord reaches almost R$3 billion.
In addition to the acquisition of businesses with brands such as Marathon, Cemp, and Rotor, WEG will integrate approximately 2,800 employees into its team, who work in ten factories, located in seven countries: United States, Mexico, China, India, Italy, Countries Netherlands and Canada.
Profit of R$1.3 billion in the first months
After confirming the acquisition, the giant from Santa Catarina also released the financial results for the first quarter of 2024. During the period, the company’s net operating revenue was R$8 billion, an increase of 4.4% compared to last year’s history. .
The multinational also presented a net profit of R$1.32 billion, an increase of 1.6% compared to the previous year.
Still in the statements, the company reported that it invested R$351.5 million in modernizing and expanding production capacity, machines, equipment and software licenses. Of this amount, 64% was allocated to production units in Brazil.
In March, WEG also announced the investment of R$100 million in a new industrial liquid paint factory in Mexico, with the aim of expanding WEG Tintas’ global presence.
According to the company, the new factory will have approximately 5,300 m² and should enter into operation at the beginning of 2026. The new investment should expand production capacity and aims to serve the North and Central American market.
