Timken to Acquire BEKA Lubrication
The Timken Company reached an agreement to acquire BEKA Lubrication for approximately $165 million. The company serves a range of industrial sectors including wind, food and beverage, rail, and on- and off-highway.
“The acquisition of BEKA expands our global leadership in the highly attractive automatic lubrication systems market sector, increases our geographic scale and market coverage in Europe and Asia and will create new opportunities to serve wind and other industrial end markets more fully,” said Richard G. Kyle, President and CEO, Timken. “BEKA is a premier brand and technical leader, and like our Groeneveld business, offers automatic and central lubrication systems that reduce operating costs and extend equipment life. We expect to realize significant synergies, margin expansion and revenue growth opportunities through the combined Groeneveld-BEKA business.”
BEKA is headquartered in Pegnitz, Germany and employs approximately 900 people, with manufacturing, research and development based in Germany, and assembly facilities and sales offices around the world.
The transaction is subject to regulatory review approval in Germany, and is expected to close fourth quarter this year. Timken expects the transaction to be accretive to earnings in 2020.