Timken Buys Drives
The Timken Co. announced it has agreed to acquire privately held Drives LLC for $92 million in cash. Based in Fulton, Ill., Drives is a manufacturer of highly engineered drive-chains, roller-chains and conveyor augers for the agricultural and industrial marketplace. The company posted sales of approximately $100 million in the last 12 months, with 430 employees in North America.
"The Drives business brings significant expertise in precision-engineered chain and related products, especially among global equipment manufacturers in agricultural and food processing," said Christopher Coughlin, president of Timken's Process Industries segment. "Adding Drives will enhance our overall product portfolio for the industrial process and mobile markets and offers plenty of upside as we extend their line in the marketplace using Timken's global infrastructure."
Timken expects to complete the transaction within approximately 30 days, pending certain government and regulatory approvals. The acquisition should be accretive to Timken earnings in its first full year.
Coughlin noted that Drives' engineered products are utilized in mobile and industrial machinery in oil and gas; aggregate and mining; primary metals; forest products; and other heavy industries.
This purchase - along with Timken's recent acquisitions of Philadelphia Gear and QM Bearings - is intended to further increase the breadth of Timken's mechanical power transmission product offering and move the company beyond its original focus on bearings.