NORTH CANTON, Ohio,
June 27, 2017 /PRNewswire/
-- The Timken Company (NYSE: TKR; www.timken.com), a global
leader in engineered bearings and mechanical power transmission
products, today announced that it has reached an agreement to
acquire Groeneveld Group, a leading provider of automatic
lubrication solutions used in on- and off-highway applications, for
approximately $280 million. For the
12 months ending May 31, 2017,
Groeneveld Group sales were approximately $105 million. The
transaction is expected to be accretive to adjusted earnings per
share in 2017. Additionally, Groeneveld Group has a strong
margin profile, which is expected to be accretive to Timken's
EBITDA margin and to be further enhanced as a result of
synergies.
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"The acquisition of Groeneveld will further expand our presence
in the automatic lubrication systems space, which we entered in
2013 with our acquisition of Interlube," said Richard G. Kyle, Timken president and chief
executive officer. "Groeneveld will bring a strong brand and
management team, a global customer base and an industry-leading
product portfolio that has an attractive market position in
off-highway equipment and heavy trucks."
Groeneveld Group is headquartered in Gorinchem, Netherlands, with manufacturing facilities in
Italy. Automatic lubrication
delivery systems, which enhance vehicle and machine uptime through
automated maintenance and safety support, represent the
predominance of the company's offering. The company also has a
small telematics business, Groeneveld ICT, which provides solutions
for truck fleet operators. Groeneveld Group employs approximately
600 people.
"We're excited to be gaining such a well-known and respected
business with a differentiated value proposition, deep customer
relationships and a talented workforce," said Kyle. "We look
forward to welcoming the Groeneveld team to Timken."
As part of the transaction, Henk
Groeneveld, sole shareholder and non-executive president,
will be retiring from the company. "Henk led Groeneveld for
four decades and made it the company it is today, and he has put in
place a great leadership team," said Kyle. "We wish Henk and his
family well in retirement."
The transaction is expected to close in early July and will be
funded with a combination of cash and debt.
Over the last five years, Timken has diversified its portfolio
beyond bearings, adding gearboxes, chain, belts, couplings,
lubrication systems, industrial clutches and brakes, and a variety
of industrial services to its portfolio. These product lines are
marketed under industrial brands that include Timken®,
Philadelphia Gear®, Drives®,
Lovejoy® and Interlube™.
The company has posted supplemental materials on its investor
relations website at http://investors.timken.com.
About The Timken Company
The Timken Company (NYSE: TKR; www.timken.com) engineers,
manufactures and markets bearings, gear drives, belts, chain,
couplings, and related products, and offers a spectrum of
powertrain rebuild and repair services. The leading authority on
tapered roller bearings, Timken today applies its deep knowledge of
metallurgy, tribology and mechanical power transmission across a
variety of bearings and related systems to improve reliability and
efficiency of machinery and equipment all around the world. The
company's growing product and services portfolio features many
strong industrial brands including Timken®,
Fafnir®, Philadelphia Gear®,
Drives®, Lovejoy® and Interlube™. Known for
its quality products and collaborative technical sales model,
Timken posted $2.7 billion in sales
in 2016. With more than 14,000 employees operating from 28
countries, Timken makes the world more productive and keeps
industry in motion.
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 accretion 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 complete the acquisition due
to either the failure to satisfy any condition to the closing of
the transaction, including the occurrence of any event, change or
other circumstance that could give rise to the termination of the
purchase agreement; the inability to successfully 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, 2016,
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:
234.262.3514
mediarelations@timken.com
Investor Relations:
Jason
Hershiser
234.262.7101
jason.hershiser@timken.com
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SOURCE The Timken Company