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Timken buys Netherlands-based company for $280 million

Timken Co. announces it has purchased a Netherlands company that specializes in automatic lubrication processes used in on- and off-highway equipment. The deal is valued at $280 million.

JACKSON TWP. Timken Co. has struck a deal to buy Groeneveld Group, a company that makes automatic lubrication systems and is based in the Netherlands.

It’s Timken’s fifth acquisition over the past 12 months as the company continues to diversify into power-drive-related segments related to the traditional tapered roller bearing business.

The deal is valued at $280 million, making it the second largest in Timken’s history and it’s largest acquisition in Europe. The announcement was made after the stock market closed Tuesday.

Groeneveld Group sales were approximately $105 million for the 12 months ended May 31.

Richard G. Kyle, Timken president and chief executive officer, said the acquisition expands the company’s presence in the automatic lubrication systems business, which it entered in 2013 with the acquisition of Interlube. Groeneveld group makes automatic lubrication processes that are used in on- and off-highway equipment.

“Groeneveld will bring a strong brand and management team, a global customer base and an industry-leading product portfolio that has an attractive market position in off-highway equipment and heavy trucks,” Kyle said in the press release.

Groeneveld Group is based in Gorinchem, Netherlands, and has manufacturing facilities in Italy. It has about 600 employees.

Automatic lubrication delivery systems — Groeneveld’s primary product — are used to improve vehicle and machine operation time with automated maintenance and safety support. The company also has a small telematics business, Groeneveld ICT, which provides solutions for truck fleet operators.

 

“We’re excited to be gaining such a well-known and respected business with a differentiated value proposition, deep customer relationships and a talented workforce,” Kyle said.

Timken hopes the deal will close in early July. It will be funded with a combination of cash and debt.

As part of the transaction, Henk Groeneveld, the company’s sole shareholder and non-executive president, will retire.

“Henk led Groeneveld for four decades and made it the company it is today, and he has put in place a great leadership team,” Kyle said. “We wish Henk and his family well in retirement.”

Over the last five years, Timken has diversified by adding a variety of industrial services. New operations include gearboxes, chain, belts, couplings, lubrication systems, industrial clutches and brakes, and to its portfolio. The product lines are marketed under industrial brands that include Timken, Philadelphia Gear, Drives, Lovejoy and Interlube.

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