Ann Arbor, MI — Kaydon Corp. has acquired Avon Bearings Corporation in a cash transaction valued at US$55 million. The acquisition of Avon is expected to be accretive to Kaydons earnings within the first full year of ownership and immediately accretive to cash earnings. Avon is expected to add approximately $30 million to Kaydons fiscal 2008 sales.
This strategic acquisition represents an important step for Kaydon in accelerating growth in our bearings business, said James OLeary, president and chief executive officer of Kaydon.
OLeary added, It will add immediate capacity to our growing wind energy platform while both strengthening existing customer relationships and adding others. In addition, Avon will broaden our presence in important offshore crane, construction and steel markets for very large diameter bearings, while also providing access to the refurbishment market, where Avon has built a leadership position over many years.
Headquartered in Ohio, Avon is a leading custom designer and manufacturer of high-precision large-diameter turntable bearings. Avon also remanufactures bearings, sells replacement bearings, and is known globally for its focus on engineering support, product quality, and proprietary manufacturing capabilities.
One of the major markets that Kaydon supplies is the rapidly growing wind energy market where Kaydon is taking a prominent position in the supply of pitch and yaw bearings. Other typical industries served by both Kaydon and Avon are construction equipment, logging machines, aerial baskets, medical equipment, military vehicles, radar antennas, and a variety of industrial equipment.
The acquisition complements Kaydons current and expanding manufacturing capabilities. This acquisition, combined with previously announced major capital investment programs, will enable Kaydon to become the largest manufacturer of slewing ring bearings in North America, says OLeary.