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.
SOURCE The Timken Company