Kaydon Corporation Announces Acquisition of Avon Bearings Corporation
Ann Arbor, Michigan - October 29, 2007
Kaydon Corporation today announced that it has acquired Avon Bearings Corporation ("Avon") in a cash transaction valued at $55 million. The acquisition of Avon is expected to be accretive to Kaydon's earnings within the first full year of ownership and immediately accretive to cash earnings. Avon is expected to add approximately $30 million to Kaydon's fiscal 2008 sales.
"This strategic acquisition represents an important step for Kaydon in accelerating growth in our market-leading bearings business," said James O'Leary, President and Chief Executive Officer of Kaydon. Mr. O'Leary 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. Avon is one of the most respected and trusted manufacturers of large diameter turntable bearings serving customers in a diverse set of attractive and growing end markets.
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 Kaydon's current and expanding manufacturing capabilities. This acquisition, combined with the previously announced major capital investment programs, will enable Kaydon to become the largest manufacturer of slewing ring bearings in North America.
About Kaydon
Kaydon Corporation is a leading designer and manufacturer of custom-engineered, performance-critical products, supplying a broad and diverse group of industrial, aerospace, medical and electronic equipment, alternative-energy, and aftermarket customers.
Contact:James O'Leary
President and Chief Executive Officer
http://www.kaydon.com
(734) 747-7025 ext. 2025
