NORTH CANTON, Ohio,
Sept. 16, 2019 /PRNewswire/ -- The
Timken Company (NYSE: TKR), a world leader in engineered bearings
and power transmission products, has reached an agreement to
acquire BEKA Lubrication (BEKA), a leading global supplier of
automatic lubrication systems, for approximately $165 million. The company serves a diverse range
of industrial sectors including wind, food and beverage, rail, on-
and off-highway and other process industries. BEKA sales are
expected to be around $135 million
for the full year 2019.
"The acquisition of BEKA expands our global leadership in the
highly attractive automatic lubrication systems market sector,
increases our geographic scale and market coverage in Europe and Asia and will create new opportunities to
serve wind and other industrial end markets more fully," said
Richard G. Kyle, Timken president
and chief executive officer. "BEKA is a premier brand and technical
leader, and like our Groeneveld business, offers automatic and
central lubrication systems that reduce operating costs and extend
equipment life. We expect to realize significant synergies, margin
expansion and revenue growth opportunities through the combined
Groeneveld-BEKA business."
Family owned and operated since its founding in 1927, BEKA is
headquartered in Pegnitz, Germany.
The company employs approximately 900 people, with manufacturing,
research and development based in Germany, and assembly facilities and sales
offices around the world.
Timken first entered the automatic lubrication market in 2013
with the acquisition of Interlube and then significantly expanded
its portfolio and global reach through the acquisition of
Groeneveld in 2017. With the acquisition of BEKA, Timken will
become the world's second largest producer of industrial automatic
lubrication systemsi, which displace manual lubrication
methods to improve equipment life and reliability, while reducing
the total cost of ownership. The transaction advances the company's
strategy, which is focused on growing its leadership position in
engineered bearings while diversifying Timken's portfolio into
adjacent products and markets.
The privately negotiated transaction is subject to
regulatory review approval in Germany, and is expected to close during the
fourth quarter of this year. It will be funded with cash and
existing debt facilities. Timken expects the transaction to be
accretive to earnings in 2020.
About The Timken Company
The Timken Company (NYSE: TKR; www.timken.com) designs
a growing portfolio of engineered bearings and power transmission
products. With more than a century of knowledge and innovation, we
continuously improve the reliability and efficiency of global
machinery and equipment to move the world forward. Timken
posted $3.6 billion in sales in 2018
and employs more than 18,000 people globally, operating from 35
countries.
Certain statements in this release (including statements
regarding the company's estimates and expectations) that are not
historical in nature are "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995. In
particular, the statements regarding the company's
expectations regarding realization of synergies, margin
expansion, accretion and the timing of the closing of this
transaction are forward-looking. The company cautions that actual
results may differ materially from those projected or implied in
forward-looking statements due to a variety of important factors,
including: the inability to successfully acquire and integrate the
newly acquired business into the company's operations or achieve
the expected synergies associated with the acquisition; and adverse
changes in the markets served by the newly acquired
business. Additional factors are discussed in the company's
filings with the Securities and Exchange Commission, including the
company's Annual Report on Form 10-K for the year ended Dec.
31, 2018, quarterly reports on Form 10-Q and current reports on
Form 8-K. Except as required by the federal securities laws, the
company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Media Relations:
Scott
Schroeder
234.262.6420
scott.schroeder@timken.com
Investor Relations:
Jason
Hershiser
234.262.7101
jason.hershiser@timken.com
i Based on industry estimates.
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SOURCE The Timken Company