) recently priced its common shares offered for sale to the
public at $25.75. The offering, declared along with the fiscal
third quarter 2014 results, is expected to close on Feb 5, 2014,
subject to customary closing conditions.
The company has offered up to 3 million of common stock for sale
to the public. Expected net proceeds of $74.4 million will be
utilized for Rexnord's general corporate purposes.
Besides Rexnord selling its shares, 12 million more shares have
been offered for resale to the public by certain affiliates of
Apollo Global Management, LLC
) and George M. Sherman, the Chairman of the board of directors
of Rexnord along with his affiliates. Another 2.25 million shares
will be available for underwriters. These proceeds, anticipated
to be roughly $297.7 million, will not be received by the
After the close of the offering, Rexnord is likely to have
approximately 101.0 million outstanding common shares.
A brief snapshot of Rexnord Corporation's third quarter of fiscal
2014 (ended Dec 28, 2013) results has been provided below.
Earnings per share, adjusted for one-time items, were 34 cents in
the quarter, above 19 cents earned in the year-ago quarter and
the Zacks Consensus Estimate of 32 cents. Net sales generated
were $489.1 million, up 3.7% year over year, primarily on the
back of healthy organic sales growth at the company's business
For fiscal year 2014, Rexnord raised its earnings per share
guidance to $1.35-$1.39 from $1.32-$1.38 expected earlier. The
revision came on the heels of a solid third quarter performance
and the completion of the acquisition of Precision Gear Holdings.
Rexnord Corporation is a well-known mechanical components
manufacturer and currently has a $2.6 billion market
capitalization. The stock currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the industry include
Franklin Electric Co., Inc.
). All these companies hold a Zacks Rank #2 (Buy).
APOLLO GLOBAL-A (APO): Free Stock Analysis
EATON CORP PLC (ETN): Free Stock Analysis
FRANKLIN ELEC (FELE): Free Stock Analysis
REXNORD CORP (RXN): Free Stock Analysis
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