Timken Announces Acquisition to Extend Its Process Industries Portfolio
QM will add spherical steel housed units and couplings to Timken's product lineup
CANTON, Ohio, July 19 - The Timken Company (NYSE: TKR) today announced it has agreed to acquire the business of QM Bearings and Power Transmission, Incorporated, based in Ferndale, Washington. QM manufactures spherical roller bearing steel housed units and elastomeric and steel couplings used in demanding processes such as sawmill and logging operations.
The addition of QM aligns with Timken's strategy to expand its penetration in high-performance applications and extend its power transmission capabilities beyond the company's original, core bearing business. The acquisition is part of the company's continuing effort to provide customers with a wider breadth of friction management and power transmission solutions for the life of their machinery.
QM's product offering will complement Timken's recently released Type E product line. It will strengthen the presence of the Timken brand in the roller housed unit category and provide an additional offering for markets such as forestry, which require high-performance, durable products.
"QM is a great addition for Timken, with a solid, value-added product line that extends our portfolio to offer a wider selection of high-performance products for our customers in the process industries," said Chris Coughlin, president of Timken's Process Industries segment. "These units are an excellent fit with our existing product line and Timken's focus on distribution will provide greater opportunity as we extend them further in the global aftermarket channel."
The acquisition, which is expected to be accretive to earnings in its first full year, is subject to certain government and regulatory approvals. Timken expects to close the transaction by the fourth quarter of 2010. Terms of the deal were not disclosed.
QM Bearings and Power Transmission was founded in 1951 as a manufacturer serving area sawmill and logging customers. The company then began to design and manufacture bearings that could withstand the harsh operating conditions common to logging equipment. In the past 12 months, QM posted sales of more than $14 million.
About The Timken Company
The Timken Company (NYSE:TKR)(NYSE:http://www.timken.com) keeps the world turning with innovative friction management and power transmission products and services, enabling its customers' machinery to perform more efficiently and reliably. With sales of $3.1 billion in 2009, operations in 26 countries/territories and approximately 17,000 employees, Timken is Where You Turn® for better performance.
