NORTH CANTON, Ohio,
July 24, 2018 /PRNewswire/
-- The Timken Company (NYSE: TKR), a world leader in
engineered bearings and power transmission products, today
announced that it has reached an agreement to acquire Cone Drive, a
leader in precision drives used in diverse markets including solar,
automation, aerial platforms, and food and beverage. Cone Drive
sales are expected to be slightly above $100
million for the full year 2018.
"We are executing our strategy to profitably grow Timken's power
transmission offering across diverse markets around the world,"
said Richard G. Kyle, Timken
president and chief executive officer. "The acquisition of Cone
Drive will deepen Timken's position in attractive, high-growth end
markets such as solar and increase our power transmission presence
in China. Cone Drive is highly
complementary to our business, and we plan to generate significant
sales and cost synergies with this transaction."
Cone Drive is headquartered in Traverse City, Mich., and has manufacturing
operations in the United States
and China. The company has a
global customer base and employs approximately 500 people. The
business produces a broad range of highly customizable precision
drive products that include Cone Drive® and
H-Fang® branded high-torque worm gears, harmonic
solutions and precision slew drives.
In recent years, Timken has diversified its portfolio by
expanding into power transmission products and services adjacent to
its core bearing lines. This includes gear drives, chain, belts,
couplings, automated lubrication systems, industrial clutches and
brakes, and a variety of related services, all marketed under
strong industrial brands that include Timken®,
Philadelphia Gear®, Groeneveld®,
Drives® and Lovejoy®.
Timken expects the acquisition to be accretive to earnings per
share excluding one-time costs in the first year of ownership. The
transaction, which is subject to customary government and
regulatory approvals, is expected to close near the end of
August 2018 and will be funded with
debt.
Presentation materials related to this transaction have been
posted to the company's website 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, lubrication systems 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 the 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®, Groeneveld®, Drives® and
Lovejoy®. Known for its quality products and
collaborative technical sales model, Timken posted $3 billion in sales in 2017. With more than
15,000 employees operating from 33 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, sales and cost
synergies, impact to adjusted earnings per share and the expected
market opportunities 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 receipt of regulatory approval, or 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, 2017, 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