WEG announces acquisition in Austria
Watt Drive Acquisition enhances product portfolio and reinforces WEG¿s presence in power transmission
WEG S.A. (Bovespa: WEGE3 / OTC: WEGZY) announced today that it has signed an agreement to acquire Watt Drive Antriebstechnik GmbH ("Watt Drive"), an Austrian corporation that designs and manufactures gearboxes, gear motors, drives and control systems.
Watt Drive, founded in 1972 and based nearVienna,Austria, is a traditional European player in power transmission, with industrial plants in Austria and assembly units in Germany and Singapore and an extensive distribution network. Watt Drive¿s revenues in 2011 are estimated to reach ¿ 30 million.
With theWatt Drive acquisition, WEG enhances its products and industrial systems complete solutions portfolio.
"The market has been demanding power transmission solutions that integrate electric motors, frequency inverters and gearboxes, as there are clear improvements on operating performance and energy efficiency maximization" explains Mr. Siegfried Kreutzfeld, WEG Motores Managing Director. "Our strategy is to offer a complete portfolio of products and solutions. On doing so, we become more flexible to supply our clients¿ needs and increase our growth potential."
WEG has recently announced its 2011 third quarter results, showing 11% Net Reveneus growth over 2011. Outside Brazil, growth reached 17%.