COME GROW WITH US
Rexnord’s goal is to build multiple, global strategic platforms in end-markets with sustainable growth opportunities where we are, or have the opportunity to become, the industry leader. Acquisitions are a critical part of this growth philosophy.
We look for smart solutions in markets, channels and geographies where we believe we can add value. Our strong balance sheet and significant cash flow enable us to pursue a wide variety of opportunities. In fact, since 2005, we’ve invested over $2 billion in our mergers and acquisitions strategy across 5 continents.
"You've blended your processes into the technologies...and you're bringing along our great people...so I think it's a win on all sides."- Scott Monteith, Founder and CEO of Monteco Ltd., which sold Green Turtle Technologies to Rexnord.
Our M&A Focus
- Accelerating core revenue growth by entering new end markets or channels
- Strengthening our base businesses through product, channel or geographic expansion
- Creating opportunities to innovate even faster
- Diversifying our base business to sustain growth across economic cycles
- Identifying businesses that will benefit from the Rexnord Business System and the opportunities it brings
- We are long-term investors. We invest for the future, and our intention is to provide the resources to help the organizations we buy to grow and diversify over the long-term.
- We respect your heritage. Like the companies we acquire, we have a long heritage of entrepreneurship and strong customer relationships. We’ll respect yours.
- We’ll accelerate your growth. We’re committed to the continued development of our acquisitions through accelerated growth and global markets.
- We’ll give your people opportunities. Our long-term commitment brings a degree of stability and security for associates. Additionally, access to Rexnord’s greater organization offers exciting career opportunities to associates. Of today’s Rexnord workforce, about half joined us through acquisitions.
- We’re ready to work together. Our Rexnord Business System is a scalable, process-based framework that makes it easy to start working together, sharing learnings and enhancing results.
- We’re easy to deal with. We take a pragmatic approach to due diligence, with the goal of exchanging information efficiently and with minimal disruption to the day-to-day business. We keep an open dialogue and are willing to find creative ways to work together.
Areas of Interest
We’re actively seeking qualified component and sub-system acquisition candidates in industrial applications with preference towards:
- Commercial Plumbing
- Food & Beverage
- Water & Wastewater
- Building Products
- Warehouse & Distribution
- Flow Control
- Motion Control
- Power Generation
"The team at Rexnord really knows how to get things done. They are experts at acquiring companies and making it easy for a potential seller to work with them."– Bill Wangerin, Managing Director, One Equity Partners, which sold Merit Gear and Precision Gear to Rexnord.
Rexnord acquired Green Turtle in 2014, making it part of Zurn Industries in the Water Management platform. Green Turtle brought 20 years of expertise in effluent water management and environmental problem-solving, with technology and expertise to meet sanitary sewer regulations while protecting the environment, public health and communities. As part of Rexnord, Green Turtle gained greater reach and the Rexnord Business System, which has enabled a tighter focus on day-to-day efforts from quality to financial results.
Joining a larger organization also opened new doors for Green Turtle, says Samuel Leung, former Green Turtle CFO and current General Manager of Zurn Industries Canada. "Rexnord brought us a much larger base. We used to have around 10 people representing the business across North America. Now, through Zurn, there are about 50 in the U.S. and 10 in Canada. So, we're growing faster than we could have grown on our own. We have access to more resources, and we can think even bigger than we used to think."
Today, Green Turtle products are reaching more customers and the brand's innovations are rolling out faster than ever before. "When we started adopting the Rexnord Business System, of course there was some resistance to change. But we saw improvements pretty quickly - some incremental and some giant steps forward,” explains Leung.
When looking for a buyer for Merit Gear and Precision Gear back in 2008, One Equity Partners Managing Director Bill Wangerin says his team created a short list of potential acquirers with Rexnord among the top of the list.
“Rexnord has always been a serial acquirer of businesses. They had businesses in the industrial gear market, so they seemed to be a natural fit,” Wangerin explains.
As the negotiations proceeded, Wangerin says that the Rexnord team was pragmatic and efficient. “We've worked with a lot of Fortune 500 firms, a lot of big companies, and some of them we would classify as ‘Complicators’ and some of them are ‘Simplifiers,’” he explains. “The team at Rexnord really knows how to get things done. They are experts at acquiring companies and making it easy for a potential seller to work with them.”
One Equity Partners even gave Rexnord exclusivity in the process. Wangerin chalks this up to attitude and smarts. “Rexnord was also very clever. They're intelligent and they know what they're doing. So, we felt comfortable giving exclusivity to them and working with them to get this transaction closed in a very quick timeframe.”
Ultimately, he adds, the deal was about the future. “It was important to us to find a steward for the businesses that we owned. We’re confident that the two companies we sold to Rexnord will fit in very nicely, and that the employees at both companies will have a very strong future, and a better future, by being part of the Rexnord organization.”
“The team at Rexnord really knows how to get things done. They are expert at acquiring companies and making it easy for a potential seller to work with them."– Bill Wangerin, Managing Director, One Equity Partners, which sold Merit Gear and Precision Gear to Rexnord.
Sometimes the best opportunities come along at just the right time. For Euroflex Transmissions former owner Ross Goody, the timing was right in 2014.
“We enjoyed everything about growing Euroflex from the ground up. But at a certain point, we understood that we had grown it as far as we could,” says Goody. “We were four directors running what had become a rather large global business. And we were principally engineers, not accountants or businessmen. We realized that if we wanted the business to grow any more, we weren’t going to be able to take it there.”
Rexnord was appealing, he says, because of its wide portfolio and reach. “Other companies might have bought Euroflex to shut it down and eliminate competition. But Rexnord had a slot for the Euroflex product. Customers can buy all the couplings and gears they need from one company,” notes Goody. “Add to that Rexnord’s huge organization with many markets and salespeople, and their commitment to investing in R&D, and we had the chance of moving massively forward in the marketplace.”
Still, selling a business is a bit heart-wrenching, says Goody. “It’s like it’s your child. But you do want it to keep growing. Rexnord was the right company because we could see a secure future for our products and our workforce with them. So far, the transition has lived up to every expectation.”
As someone continually innovating new small businesses, Scott Monteith, founder and CEO of Monteco Ltd., says he knows there’s only so far certain businesses can grow on their own. That’s why when Rexnord’s Zurn business approached him about selling the Green Turtle business, he was open to the possibility.
“Rexnord has the reputation, the longevity and the geography. We weren’t necessarily looking to sell, but we knew the people at Zurn, and it seemed like a very logical fit. The communications were fantastic and it’s turned out really well.”
“Green Turtle was my baby,” Monteith continues. “You raise your baby to teenage-hood, and then eventually you send it off to university. So metaphorically speaking, we sent our kid to university when we sold it to Rexnord. We wanted it to be safe, we wanted the people to be treated professionally, and we wanted them to have opportunity.”
How has it turned out? Monteith says the sale is a point of pride. “When we tell people who Green Turtle was sold to, it’s nice to associate our business with a global brand like Zurn. And it’s not like we’re retiring. We’re constantly investing in new businesses and technologies so it’s great to have a relationship with a large, sophisticated business, and maybe the chance to work together again in the future.”
“Rexnord has the reputation, the longevity and the geography. The transition has gone well, too," says Monteith. He notes that Rexnord has “blended your processes into the technologies...and you're bringing along our great people and giving them bigger responsibilities. So, I think it's a win on all sides."– Scott Monteith, founder and CEO of Monteco Ltd.