NORTH CANTON, Ohio,
July 8, 2016 /PRNewswire/ -- The
Timken Company (NYSE: TKR; www.timken.com), the world leader in
tapered roller bearings, today announced that it has acquired
Lovejoy, Inc., a manufacturer of premium industrial couplings and
universal joints, for approximately $66
million. For the 12 months ending March 31, 2016, Lovejoy sales were approximately
$56 million.
"The acquisition of Lovejoy is a great strategic fit, and we're
pleased to add their strong brand to our growing portfolio of
industrial brands," said Richard G.
Kyle, Timken president and chief executive officer. "Lovejoy
features premium products used in challenging applications across
diverse markets. While our two companies operate in many of the
same markets and channels in North
America, the acquisition provides exciting growth
opportunities."
Based in Downers Grove, IL,
with additional locations in the U.S., Canada and Germany, Lovejoy is widely recognized for its
flexible coupling design and as the creator of the jaw-style
coupling. Lovejoy also manufactures a line of universal joints,
hydraulics and vibration dampening products. The company's
Lovejoy®, Curtis® and RunRight®
products are considered a mainstay in diverse industries including
energy, fluid power, food and beverage, aggregate, paper and steel.
Lovejoy employs approximately 300 people.
"We're pleased to become a part of such a well-respected
industrial leader as Timken," said Mike
Hennessy, chairman of the board of Lovejoy. "Under Timken
ownership, Lovejoy's technical leadership and commitment to
customers will carry forward seamlessly. It's clearly a win-win for
our customers and our employees."
The Hennessy family has owned and operated Lovejoy for four
generations and as part of the transaction, Hennessy will be
retiring. "We have a great deal of respect for the business, brand
and talented team they have built through the years," said
Kyle.
This acquisition adds to The Timken Company's growing portfolio
of mechanical power transmission products. In recent years, Timken
has been diversifying its offering, completing a number of
acquisitions featuring products adjacent to its core bearing lines.
This includes belts, chain, gear drive systems, lubrication systems
and a variety of related services, all marketed under strong
industrial brands including Timken®, Philadelphia
Gear®, Carlisle®, Drives® and
InterlubeTM.
Timken expects the acquisition to be accretive to earnings in
the first year of ownership, excluding one-time transaction
costs.
About The Timken Company
The Timken Company
(NYSE: TKR; www.timken.com) engineers, manufactures and markets
bearings, gear drives, belts, chain 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®, Carlisle®, Drives® and
InterlubeTM. Known for its quality products and
collaborative technical sales model, Timken posted $2.9 billion in sales in 2015. With 15,000
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 and growth 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 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, 2015,
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:
Shelly
Chadwick
Vice President – Treasury & Investor Relations
234.262.3223
shelly.chadwick@timken.com
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SOURCE The Timken Company