ALTRA INDUSTRIAL MOTION acquired by REGAL REXNORD
Context
The acquisition of Altra Industrial Motion Corp. by Regal Rexnord represents a transformative step in the acquirer's strategic evolution toward becoming a global leader in high-margin automation and power transmission solutions. This transaction significantly enhances the organization's industrial powertrain offering by integrating complementary products such as high-precision brakes, gears, and clutches. A central strategic rationale for the move is the increased exposure to secular growth markets, with a substantial portion of the combined entity's sales now directed toward factory automation, medical, aerospace, and alternative energy sectors. The partnership focuses on accelerating the group's digital and Industry 4.0 strategy, improving near-term visibility through a record combined order backlog. By infusing new technical talent and applying the 80/20 management skillset, the entity facilitates significant operational efficiencies and margin enhancement initiatives. This integration unites two highly aligned cultures with a shared commitment to customer success and continuous improvement. The combination better positions the group to offer comprehensive powertrain solutions to global distributors and end-users, driving long-term innovation in energy-efficient mechanical and electrical systems.
ALTRA INDUSTRIAL MOTION, which reported an EBITDA margin of LOGIN in 2022, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN to the average currently observed in the Industry & Manufacturing sector (11.2x).
Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.
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Target
Altra Industrial Motion Corp. is a global technology organization specializing in the design and manufacture of highly engineered motion control and power transmission solutions. The entity's business model revolves around providing critical mechanical components, such as industrial brakes, clutches, and gear motor sub-systems, to diverse industrial ecosystems. Its value proposition is centered on technical durability and high-precision engineering for mission-critical applications where reliability is paramount. Strategically, the firm focuses on capturing value in secular growth markets, including factory automation, medical technology, aerospace, and high-tech warehouse logistics. By integrating advanced motion control hardware with electronic control interfaces, the organization facilitates the modernization of industrial powertrains and high-speed automated systems. The entity acts as a primary technical partner for global OEMs seeking to optimize mechanical performance and energy efficiency.
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Historical Financials (USD)
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REFERENCES
Valuation range: EV 3b - 100b USD
Revenue range: 1b - 3b USD
EBITDA range: 250M - 500M USD
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Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).