Timken to Acquire Engineered Solutions Group (iMECH), Expanding Engineered Bearings Portfolio

Rhea-AI Summary

Timken to Acquire Engineered Solutions Group

Positive

• Timken to expand product breadth with acquisition of iMECH, increasing cross-selling opportunities.
• iMECH's partnership with leading energy services companies provides growth potential.

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• None.

NORTH CANTON, Ohio, Oct. 16, 2023 /PRNewswire/ -- The Timken Company (NYSE: TKR; www.timken.com), a global leader in engineered bearings and industrial motion products, has reached an agreement to acquire Engineered Solutions Group (a.k.a. Innovative Mechanical Solutions or iMECH), based in Houston, Texas. iMECH manufactures thrust bearings, radial bearings, specialty coatings and other components primarily used in the energy industry. The business employs approximately 70 people and projects revenue of approximately $30 million for calendar year 2023.  

"The acquisition of iMECH allows us to build on our global leadership in engineered bearings by increasing our product breadth and providing exciting cross-selling opportunities," said Andreas Roellgen, executive vice president and president of Engineered Bearings at Timken. "iMECH partners with the largest and most recognizable energy services companies, delivering highly engineered bearings for extremely demanding applications."

Timken will fund the transaction with a combination of cash on hand and its existing revolving credit facility. The deal is subject to customary closing conditions and is expected to close in the fourth quarter.

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 $4.5 billion in sales in 2022 and employs more than 19,000 people globally, operating from 46 countries. Timken has been recognized among America's Most Responsible Companies by Newsweek, the World's Most Ethical Companies^® by Ethisphere, America's Most Innovative Companies by Fortune and America's Best Large 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, 2022, 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 Timken acquiring?

Timken is acquiring Engineered Solutions Group (iMECH), a manufacturer of thrust bearings, radial bearings, specialty coatings, and other components primarily used in the energy industry.

How will Timken fund the acquisition?

Timken will fund the acquisition with a combination of cash on hand and its existing revolving credit facility.

When is the expected closing of the deal?

The deal is expected to close in the fourth quarter, subject to customary closing conditions.