The Timken Company, the world leader in tapered roller bearings, announces that it has acquired Lovejoy Inc., a manufacturer of premium industrial couplings and universal joints, for approximately $66 million. For the 12 months ending March 31, 2016, Lovejoy sales were approximately $56 million.
"The acquisition of Lovejoy is a great strategic fit, and we're pleased to add their strong brand to our growing portfolio of industrial brands," says Richard G. Kyle, Timken President and Chief Executive Officer. "Lovejoy features premium products used in challenging applications across diverse markets. While our two companies operate in many of the same markets and channels in North America, the acquisition provides exciting growth opportunities."
Based in Downers Grove, IL, with additional locations in the U.S., Canada and Germany, Lovejoy is widely recognized for its flexible coupling design and as the creator of the jaw-style coupling. Lovejoy also manufactures a line of universal joints, hydraulics and vibration dampening products. The company's Lovejoy, Curtis and RunRight products are considered a mainstay in diverse industries including energy, fluid power, food and beverage, aggregate, paper and steel. Lovejoy employs approximately 300 people.
"We're pleased to become a part of such a well-respected industrial leader as Timken," says Mike Hennessy, chairman of the board of Lovejoy. "Under Timken ownership, Lovejoy's technical leadership and commitment to customers will carry forward seamlessly. It's clearly a win-win for our customers and our employees."
The Hennessy family has owned and operated Lovejoy for four generations and as part of the transaction, Hennessy will be retiring. "We have a great deal of respect for the business, brand and talented team they have built through the years," says Kyle.
This acquisition adds to The Timken Company's growing portfolio of mechanical power transmission products. In recent years, Timken has been diversifying its offering, completing a number of acquisitions featuring products adjacent to its core bearing lines. This includes belts, chain, gear drive systems, lubrication systems and a variety of related services, all marketed under strong industrial brands including Timken, Philadelphia Gear, Carlisle, Drives and Interlube.
Timken expects the acquisition to be accretive to earnings in the first year of ownership, excluding one-time transaction costs.