Timken to Sell Needle Roller Bearings Business to JTEKT
07/30/2009 - Timken signs agreement to sell the assets of its Needle Roller Bearings business, which serves primarily the automotive OE sector, to Japan’s JTEKT Corp. in a cash transaction.
The Timken Co. has signed an agreement to sell the assets of its Needle Roller Bearings business to Japan’s JTEKT Corp. in a cash transaction.
The Needle Roller Bearings business, which primarily serves customers in the automotive original-equipment sector, was part of Timken’s acquisition of Torrington in 2003. The business has approximately 3400 associates and manufactures highly engineered needle roller bearings, including an extensive range of radial and thrust needle roller bearings, as well as bearing assemblies and loose needles, for automotive and industrial applications.
The following facilities in North America, Europe and Asia are affected by the agreement:
- In North America, Cairo, Dahlonega, and Sylvania, Ga.; Greenville and Walhalla, S.C.; and Bedford, Que., Canada
- In Europe, Brno and Olomouc, Czech Republic; Maromme, Moult, and Vierzon, France; Kuensebeck, Germany; and Bilbao, Spain
- In Asia, LiYuan District, China.
Upon closing, Timken would receive approximately $330 million in cash for the business, subject to adjustments for working capital. Timken said proceeds from the sale, which will help the company increase its liquidity, would also be used for general company purposes.
“This transaction is a major step forward in our strategy to transform our portfolio to focus on industrial sectors with strong aftermarkets,” said James W. Griffith, Timken President and CEO. “It positions us to concentrate our resources on areas where we can realize mutual value with our customers.”
The agreement is subject to customary regulatory approvals and certain closing conditions. Closing is expected to occur by the end of 2009.
A leading global manufacturer of highly engineered needle roller bearings for automotive and mobile applications, the Needle Roller Bearings business was originally formed in 1912, and acquired by Timken in 2003 through its acquisition of The Torrington Co. The business had $621 million in sales in 2008 and employs approximately 3400 associates. With 12 manufacturing facilities and 3 engineering technology centers around the world, the Needle Roller Bearings business primarily serves original-equipment and tier-one automotive manufacturers, including North American, European and Japanese customers.
JTEKT Corp. is a leading Japanese manufacturer of steering systems, driveline components, bearings and machine tools. The company’s bearings solutions are used in a wide variety of applications, including automobiles, jet engines, windmill power generators, and shinkansen (bullet trains). JTEKT was formed in January 2006 following the merger of Toyoda Machine Works Ltd. and Koyo Seiko Co. Ltd. Koyo Seiko was founded in 1921, and Toyoda Machine Works in 1941. Headquartered in Nagoya and Osaka, JTEKT has 34,000 employees, with operations in 70 locations worldwide, encompassing Asia/Oceania, North America and Europe. As of March 31, 2009, JTEKT had sales of $10.9 billion (1,017 billion JPY).
Timken provides innovative friction management and power transmission products and services. The company reported sales of $5.7 billion in 2008.
