Officials from A.O. Smith Corp. (NYSE:AOS) announced that the firm plans to sell its electrical-products unit to Regal-Beloit Corp. (NYSE:RBC), MarketWatch reports Monday.
The deal is set at the price of $875 million.
Shares of A.O. Smith are trading up 3.13% on the news at $44.42, as are shares of Regal-Beloit, which are trading 5.27% higher at $67.11.
A.O. Smith manufactures products through its electric motor and water systems technologies segments.
A.O. Smith had sales growth of 0.1% during the last fiscal year.
The company has reported $2.2 billion in sales over the past 12 months and is expected to report $2.3 billion in sales in the next fiscal year.
A.O. Smith is currently above its 50-day moving average (MA) of $38.85 and above its 200-day MA of $35.46.
In the last five trading sessions, the 50-day MA has climbed 0.95%, while the 200-day MA has risen 0.87%.