Following the strategy of diversifying its business areas and expanding existing product portfolio, WEG has just announced that its subsidiary WEG-CESTARI has signed an agreement for the acquisition of the entire capital stock of Geremia Redutores, a Brazilian manufacturer of Gearboxes, Geared Motors, Speed and Flexible Couplings, and Gearboxes Components. This transaction is subject to the approval of CADE (Administrative Council for Economic Defense).

Headquartered in the southern city of Bento Gonçalves, state of Rio Grande do Sul, the company Geremia, which was founded in 1973, counts on 15,000 square meters of manufacturing facilities and has available land of 52,000 square meters. Employing around 220 people, the company serves both the local and overseas markets, mainly in South and Central America. Net revenues in 2017 were in the range of R$ 57.4 million.

According to Mr. Luis Alberto Tiefensee, Managing Director of WEG Motors Division, the acquisition of Geremia, in addition to expanding WEG-CESTARI's product portfolio, strengthens the company's presence in the gearbox market. "With the incorporation of Geremia's product lines we will significantly expand our portfolio and will keep moving forward with our strategy of offering complete solutions with a broad product line, combining electrical and mechanical solutions," says Mr. Tiefensee.

About WEG-Cestari

It was created through a Joint Venture in 2011 to integrate the electric motors and industrial automation systems solutions offered by WEG and the gearboxes developed by CESTARI into integrated solution packages. Power transmission solutions, which integrate electric motor, frequency inverter and gearboxes, are increasingly demanded by the market, as they improve operational performance and maximize energy efficiency.