Timken Acquires American Roller Bearing Company

Rhea-AI Summary

The Timken Company (NYSE: TKR) has acquired the assets of American Roller Bearing Company (ARB), a manufacturer based in North Carolina, for an undisclosed amount. This strategic acquisition aims to enhance Timken's portfolio, adding ARB's offerings to its engineered bearing solutions. ARB generated over $30 million in sales in 2022, reflecting a strong U.S. market presence and a robust aftermarket business. The transaction was funded through Timken's cash reserves. According to Timken's CEO, Richard G. Kyle, the integration of ARB aligns well with their business model and customer base, potentially increasing market share.

Positive

• Acquisition of ARB enhances Timken's engineered bearing solutions portfolio.
• ARB generated sales of over $30 million in 2022, indicating strong market presence.
• Funding was through cash on hand, minimizing debt impact.

Negative

• Integration challenges may arise from merging ARB into Timken's existing operations.
• Forward-looking statements indicate potential risks to expected financial performance.

NORTH CANTON, Ohio, Feb. 1, 2023 /PRNewswire/ -- The Timken Company (NYSE: TKR; www.timken.com), a global industrial leader in engineered bearings and industrial motion products, has acquired the assets of American Roller Bearing Company (ARB), a North Carolina-based manufacturer of industrial bearings. ARB's offerings join Timken's industry-leading portfolio of engineered bearing solutions. ARB, which boasts a large U.S. installed base and strong aftermarket business, generated sales of more than $30 million in 2022.

"ARB's end-market mix, customer base and aftermarket position fit our Timken business model extremely well," said Richard G. Kyle, Timken president and chief executive officer. "We're proud to welcome ARB and its employees into The Timken Company." 

ARB employs approximately 190 people and operates manufacturing facilities in Hiddenite and Morganton, N.C. Prior to this transaction, three generations of the Succop family owned and operated ARB since its founding in 1911.

Timken funded the transaction with cash on hand.

About The Timken Company 
The Timken Company (NYSE: TKR; www.timken.com) designs a growing portfolio of engineered bearings and industrial motion products. With more than a century of knowledge and innovation, we continuously improve the reliability and efficiency of global machinery and equipment to move the world forward. Timken posted $4.1 billion in sales in 2021 and employs more than 18,000 people globally, operating from 43 countries. Timken has been recognized among America's Most Responsible Companies by Newsweek, the World's Most Ethical Companies® by Ethisphere, and America's Best Employers, Best Employers for New Graduates and Best Employers for Women by Forbes.

Safe Harbor
Certain statements in this release (including statements regarding the company's forecasts, estimates, plans and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, the statements related to expectations regarding the expected future financial performance of the newly acquired business are forward-looking. The company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: the inability to successfully integrate the newly acquired business into the company's operations or achieve the expected synergies associated with the acquisition; negative impacts to the newly acquired business as a result of global conflicts and hostilities; and adverse changes in the markets served by the newly acquired business. Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended Dec. 31, 2021, quarterly reports on Form 10-Q and current reports on Form 8-K. Except as required by the federal securities laws, the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. 

Media Relations: 
Scott Schroeder 
234.262.6420 
scott.schroeder@timken.com

Investor Relations: 
Neil Frohnapple 
234.262.2310 
neil.frohnapple@timken.com

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SOURCE The Timken Company

FAQ

What is the purpose of Timken's acquisition of American Roller Bearing Company?

The acquisition aims to enhance Timken's portfolio of engineered bearing solutions.

How much revenue did American Roller Bearing Company generate in 2022?

American Roller Bearing Company generated over $30 million in sales in 2022.

What challenges may Timken face after acquiring ARB?

Timken may face integration challenges merging ARB into its existing operations.

How did Timken fund the acquisition of ARB?

Timken funded the acquisition using cash on hand.

What are the potential risks associated with the acquisition?

Potential risks include integration challenges and impacts from global conflicts affecting ARB's business.