Rexnord Said to Abandon Sale Process After Offers Fall Short
Rexnord Corp. (RXN) is ending the search for a buyer after bids for all or parts of the industrial-components maker failed to meet expectations, said people familiar with the matter.
The Milwaukee-based company is disclosing to suitors that it’s abandoning the process, said the people, who asked not to be named because the talks were private. Rexnord, majority-owned by Apollo Global Management LLC (APO), attracted interest from private-equity firms and strategic bidders such as Watts Water Technologies Inc. (WTS), the people said.
The decision comes about three months after Rexnord said it retained Goldman Sachs Group Inc. as an adviser on strategic options. Rexnord also worked with Deutsche Bank AG on the review, a person with knowledge of the process said in March.
Rexnord dropped almost 3 percent to $17.69 yesterday in New York, giving the company a market value of about $1.7 billion.
Charles Zehren, an outside spokesman for Apollo with Rubenstein Associations Inc., declined to comment. A message left on Rexnord’s investor relations line wasn’t returned.
Rexnord has two main businesses: the water-management unit, which sells systems to water and waste-water management companies, and process and motion control, which makes parts for companies in industries from mining to aerospace to food and beverage.
Apollo bought Rexnord from Carlyle Group in 2006 for about $1.83 billion. The New York-based private-equity firm took the ball-bearing maker public in March 2012, with Rexnord raising $490.3 million including an overallotment option.
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