The Timken Co., a global supplier of engineered bearings and mechanical power transmission products, announced that it has reached an agreement to acquire the Groeneveld Group, a global provider of automatic lubrication solutions used in on- and off-highway applications, for approximately $280 million.
For the 12 months ending May 31, Groeneveld Group sales were approximately $105 million. The transaction is expected to be accretive to adjusted earnings per share in 2017, Timken said.
“The acquisition of Groeneveld will further expand our presence in the automatic lubrication systems space, which we entered in 2013 with our acquisition of Interlube,” said Richard G. Kyle, Timken president and chief executive officer. “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.”
Groeneveld Group is headquartered in Gorinchem, Netherlands, with manufacturing facilities in Italy. The company’s Lubrications Solutions operations supplies automatic lubrication, oil management and safety support systems. The company also has a small telematics business, Groeneveld ICT, which provides solutions for truck fleet operators.
Established in 1971, the group employs more than 600 employees and has over 30 company-owned branches in more than 20 countries worldwide. Groeneveld products are sold directly to manufacturers of trucks, trailers, buses, port and mining and construction equipment, as well as available in the aftermarket. The company develops and manufactures all of its products in-house.
As part of the transaction, Henk Groeneveld, sole shareholder and non-executive president, will be retiring from the company.
The transaction is expected to close in early July and will be funded with a combination of cash and debt.
Over the last five years, Timken has diversified its portfolio beyond bearings, adding gearboxes, chain, belts, couplings, lubrication systems, industrial clutches and brakes, and a variety of industrial services to its portfolio. These product lines are marketed under industrial brands that include Timken, Philadelphia Gear, Drives, Lovejoy and Interlube.