Emerson Electric Co. (EMR - Get Report) said Monday it has an agreement in place to sell its power transmission business to Regal Beloit Corp. (RBC - Get Report) in a deal valued at $1.44 billion.

St. Louis-based Emerson put the division on the block in June after receiving what it called unsolicited inquiries from suitors. The Florence, Ky.-based unit makes couplings, bearings, conveying components, gearing and drive components, generating sales of more than $600 million in 2014 and employing more than 3,000.

Terms of the deal call for Beloit, Wis.-based Regal Beloit to pay $1.4 billion in cash and assume certain post-retirement liabilities for Emerson's Power Transmission Solutions business, or PTS.

Emerson CEO David N. Farr in a statement said that the deal sheds a unit that "no longer aligns with the strategic direction of our portfolio," which is increasingly focused on high-margin specialist engineering products. "This transaction allows us to better focus on our value creation priorities and provides Regal Beloit with a unique opportunity to strengthen and grow its mechanical power transmission segment," Farr said.

For Regal Beloit, a maker of electric motors, mechanical and electrical motion controls and power generation products, the deal would create a new area of focus. Company chairman and CEO Mark Gliebe called the purchase "transformational for Regal," saying the company expects the purchase to contribute to earnings in 2015.

"PTS brings complementary products and well-known brands, but more importantly a very talented team who are experts in their markets as well as very strong operators," Gliebe said. "We are excited to have PTS as part of the Regal family and we look forward to growing with them in our future."

Regal reportedly bested Timken Co. (TKR - Get Report) as well as a number of private equity bidders in an auction for the business. The deal is expected to close in the first three months of 2015.

Robert W. Baird & Co. served as financial adviser to Regal, with White & Case LLP acting as legal counsel.