May 24, 2001 — In a move that builds upon a successful long-term business relationship in industrial bearings, The BFGoodrich Company of Charlotte, N.C., announced today it will acquire Dana Corporation’s Glacier Industrial Bearings. The business will be combined with Goodrich’s existing self-lubricated polymer bearings business, known as Garlock Bearings.
The Dana business, with sales approaching $100 million, will approximately triple the size of Garlock Bearings, extend its geographic reach globally, and provide a strong, proprietary technology position which will enable it to focus on a variety of attractive industrial markets.
Terms of the agreement were not disclosed The acquisition will be funded from Goodrich’s existing cash balances and is expected to close in the third quarter, subject to the usual reviews and conditions. Dana will retain all personnel and assets involved in its engine bearings business.
Under the agreement, Goodrich is purchasing research and development and manufacturing operations in England, France, Germany, Scotland, Slovakia, and Brazil as well as an international sales and technical support organization. Current employment is approximately 800. Goodrich will also receive all the patents, trademarks, and intellectual property associated with the industrial polymer bearings business, including the Glacier brand name, and will acquire Dana’s minority interest in an existing venture with Garlock Bearings that manufactures and sells metal-backed polymer bearings.
According to Ernie Schaub, president and CEO of Goodrich’s Engineered Industrial Products segment, “This acquisition meets or exceeds all the strategic criteria we established for expanding our industrial operations. Goodrich immediately establishes a major worldwide franchise in a significant market with 30,000 additional customers, while acquiring the facilities, people, products, and technology to grow profitably in the future.”
Garlock Bearings and Glacier Industrial Bearings have had a successful long-term business relationship that includes joint technology development and manufacturing activities. The relationship has contributed to Garlock Bearings success as a North American supplier and its position as one of Goodrich’s most attractive industrial businesses. Combining the two businesses will generate additional synergies and increased focus on worldwide markets, including agricultural, construction, and recreational equipment; refrigeration compressors, hydraulic pumps, and valves; and aerospace.
Bill Walthall, group vice-president, engineered products at Goodrich added, “The introduction of new, more durable materials, including those immediately available through the acquisition and ones under development, should widen the performance advantage of polymer bearings and allow equipment designers to accelerate the transition to these low-maintenance, high-value products for an increasing range of industrial applications.
“With the technology base and research and development capabilities acquired from Dana, we will be able to strengthen our materials development programs and take greater advantage of the trend towards self-lubricated bearings,” Walthall said.
With 2000 sales of $4.4 billion, BFGoodrich is a worldwide supplier of aerospace components, systems and services, as well as sealing and compressor systems and other engineered industrial products. On June 1, 2001 the company will change its name to Goodrich Corporation. For more information, please visit www.goodrich.com.
Dana Corporation is one of the world’s largest suppliers of components, modules, and complete systems to global vehicle manufacturers and their related aftermarkets. Founded in 1904 and based in Toledo, Ohio, the company operates some 300 major facilities in 35 countries and employs more than 75,000 people. The company reported sales of $12.3 billion in 2000. Dana’s Internet address is www.dana.com.