Carlyle company in $295m deal

Power transmission manufacturer the Rexnord Corporation, a portfolio company of the Washington, DC private equity firm, has agreed to acquire one of its competitors, a division of United Technologies, for $295 million.

Milwaukee, Wisconsin-based Rexnord Corporation, a portfolio company of Washington, DC-based private equity firm The Carlyle Group, announced today that it has agreed to acquire power transmission manufacturer Falk Corporation from a subsidiary of United Technologies for $295 million (€229 million).

The deal is expected to close in the second quarter. Financing details were not disclosed.

The current deal comes almost two and a half years after the private equity firm first acquired Rexnord in a $913 million transaction. The initial acquisition, in November 2002, was funded with $360 million of equity from Carlyle Partners III, a $3.9 billion fund that closed in December 2000. As part of that transaction, Carlyle acquired 96 percent of the company; Rexnord chief executive officer Robert Hitt and other members of company management hold the balance.

Rexnord, a manufacturer of mechanical power transmission components, had annual revenues of approximately $800 million according to a statement. Pro forma for the acquisition, the combined company will have annual revenues in excess of $1 billion.

The Carlyle Group recently completed fundraising for two separate funds, with combined capital commitments in excess of $10 billion. The firm’s US buyout fund, Carlyle Partners IV, raised $7.85 billion while its European buyout fund, Carlyle Europe Partners II fund, garnered $2.2 billion in equity commitments.