SKF to acquire Kaydon
MRO MagazineMachinery and Equipment Maintenance
Gothenburg, Sweden – The boards of directors of the SKF Group of Gothenburg, Sweden, and Kaydon Corporation of Ann Arbor, MI, have agreed that SKF will acquire Kaydon in an all-cash transaction valued at about US$1.25 billion, including...
Gothenburg, Sweden – The boards of directors of the SKF Group of Gothenburg, Sweden, and Kaydon Corporation of Ann Arbor, MI, have agreed that SKF will acquire Kaydon in an all-cash transaction valued at about US$1.25 billion, including US$95 million of net debt. The transaction will be paid through existing cash and credit lines and will be accretive to SKF earnings in year one.
Kaydon is a diversified industrial manufacturer with three distinct business areas: friction control products (bearings), velocity control products, and specialty products – including environmental services. The SKF Group is a global supplier of products, solutions and services within rolling bearings, seals, mechatronics, services and lubrication systems markets.
“We have followed the development of Kaydon for a long time. They have a strong product portfolio, strong management and a solid financial performance, and I am delighted that they will soon be part of the SKF Group,” said Tom Johnstone, SKF president and chief executive officer.
“The complementary nature of their products and technologies, their geographical and customer presence and their manufacturing footprint will enable us to even better serve our customers and distributors in the industrial market worldwide,” he added. “In particular, this acquisition, combined with our other activities, investments and acquisitions in the last few years, shows our strong commitment to the North American market.”