Regal Rexnord Acquires Arrowhead Systems

Regal Rexnord is a manufacturer of industrial powertrain solutions, power transmission components, electric motors and electronic controls, and specialty electrical components and systems.

Arrowhead provides industrial process automation solutions, including conveyors, palletizers, and depalletizers to the food and beverage, aluminum can and consumer staples (household goods, hygiene products, among others) industries. Arrowhead’s broad and deep capabilities in palletizing and conveying include a full suite of aftermarket services and solutions, which have been augmented through robust digitization investments to support industrial internet of things (IIoT), artificial intelligence (AI) and predictive maintenance capabilities.

Commenting on the transaction, Regal Rexnord CEO, Louis Pinkham, said, “Strategically, Arrowhead is everything Regal Rexnord looks for in an acquisition. It increases our exposure to attractive, high-growth end applications. In addition, its highly engineered products and solutions, including digital capabilities, are differentiated and highly valued by its customers. Arrowhead’s growth strategy is also consistent with our mindset of driving innovation with purpose — purposeful for our customers and for our planet — considering its offering directly supports rising consumer demand for more environmentally friendly packaging, particularly a migration away from single-use plastics to aluminum cans.

“Regal Rexnord and Arrowhead have highly complementary offerings that are expected to deliver enormous value to our customers. We are particularly excited about the complementary nature of Arrowhead and our ModSort^® modular transfer and diverter stations, which are fast becoming important ‘last-mile’ components in e-commerce warehouse applications, but have much broader applicability in other end uses, including those where Arrowhead focuses,” added Pinkham.