Addition will create unmatched portfolio of precision drives
NORTH CANTON, Ohio, Aug. 5, 2024 /PRNewswire/ -- The Timken Company (NYSE: TKR; www.timken.com), a global technology leader in engineered bearings and industrial motion, has agreed to acquire CGI Inc., a Nevada-based manufacturer of precision drive systems serving a broad range of automation markets with a concentration in medical robotics. The deal is subject to customary closing conditions, including regulatory approval, and is expected to close in the third quarter.
"Timken has one of the broadest and most differentiated precision drive product portfolios in the global automation industry," said Christopher Coughlin, executive vice president and president of Industrial Motion. "Driven by our strength in operational excellence, growing global footprint and expanding engineering expertise, we are well positioned for growth in attractive markets such as medical, solar, factory automation, aerospace, general industrial and more.
"CGI's precision motion-control offerings closely complement our Cone Drive harmonic and Spinea cycloidal products. With an attractive product portfolio, strong presence in high-growth medical applications, state-of-the-art manufacturing and consistently strong operating margins, the CGI acquisition is a good strategic fit for Timken that will help us continue to build on our 125-year legacy of innovation."
Timken entered the precision drives space in 2018 by acquiring Cone Drive and expanded its capabilities in 2022 by adding Spinea. These acquisitions were a direct result of Timken's strategy to diversify and expand its capabilities in industrial motion. Cone Drive and Spinea solutions enable a wide range of applications and are helping to drive Timken's growth in automation, which ranked as the company's second-largest individual end-market sector in 2023. The addition of CGI will further bolster Timken's position as a global leader in automation and robotic solutions.
CGI is a family-owned business founded in 1967 with headquarters and production facilities in Carson City, Nevada. The company employs approximately 130 people and is expected to generate around $45 million in sales in 2024.
Timken will fund the transaction with a combination of cash on hand and existing committed credit facilities.
About The Timken Company
The Timken Company (NYSE: TKR; www.timken.com), a global technology leader in engineered bearings and industrial motion, designs a growing portfolio of next-generation products for diverse industries. For 125 years, Timken has used its specialized expertise to innovate and create customer-centric solutions that increase reliability and efficiency. The company posted $4.8 billion in sales in 2023 and employs more than 19,000 people globally, operating from 45 countries. Timken is one of the World's Most Innovative Companies, according to Fast Company, and has been recognized among America's Most Responsible Companies, America's Greatest Workplaces and America's Greatest Workplaces for Diversity by Newsweek, Best Companies to Work For by U.S. News & World Report, the World's Most Ethical Companies® by Ethisphere and America's Most Innovative Companies by Fortune.
Safe Harbor
Certain statements in this release (including statements regarding the company's forecasts, estimates, plans 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 related to expectations regarding the expected future financial performance of the newly acquired business 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; negative impacts to the newly acquired business as a result of global conflicts and hostilities; 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, 2023, 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:
Neil Frohnapple
234.262.2310
investors@timken.com
SOURCE The Timken Company