Regal-Beloit looking to acquire, keep debt to EBITDA around 3 times

By Jennifer Lanning Drey

Portland, Ore., Aug. 11 - Regal-Beloit Corp. is well-positioned to make an acquisition but wouldn't let its debt ratio increase much above 3 times debt to EBITDA, Mark Gliebe, its chief operating officer, said during a Wednesday investor presentation.

The company is focused on cash flow and currently has an "essentially unused" revolving credit facility, Gliebe said at the Jefferies Global Industrial, Aerospace and Defense Conference in New York.

Regal-Beloit has historically taken its debt level higher than 50% net debt to capitalization to carry out an acquisition but would look to keep it lower in the current environment, he said.

The company has a strong pipeline of acquisition targets being considered, Gliebe also noted.

Regal-Beloit is focused on acquisition targets that can bring energy efficiency technology to any of its product platforms, as well as provide a broader footprint or obvious synergies, he said.

The company has carried out eight acquisitions in the last 36 months.

Regal-Beloit is a Beloit, Wis.-maker of industrial electric motors and tools.

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