The Timken Company, a world leader in engineered bearings and power transmission products, announces that it has reached an agreement to acquire Cone Drive, a leader in precision drives used in diverse markets including solar, automation, aerial platforms, and food and beverage. Cone Drive sales are expected to be slightly above $100 million for the full year 2018.
"We are executing our strategy to profitably grow Timken's power transmission offering across diverse markets around the world," says Richard G. Kyle, Timken President and Chief Executive Officer. "The acquisition of Cone Drive will deepen Timken's position in attractive, high-growth end markets such as solar and increase our power transmission presence in China. Cone Drive is highly complementary to our business, and we plan to generate significant sales and cost synergies with this transaction."
Cone Drive is headquartered in Traverse City, MI, and has manufacturing operations in the United States and China. The company has a global customer base and employs approximately 500 people. The business produces a broad range of highly customizable precision drive products that include Cone Drive and H-Fang branded high-torque worm gears, harmonic solutions and precision slew drives.
In recent years, Timken has diversified its portfolio by expanding into power transmission products and services adjacent to its core bearing lines. This includes gear drives, chain, belts, couplings, automated lubrication systems, industrial clutches and brakes, and a variety of related services, all marketed under strong industrial brands that include Timken, Philadelphia Gear, Groeneveld, Drives and Lovejoy.
Timken expects the acquisition to be accretive to earnings per share excluding one-time costs in the first year of ownership. The transaction, which is subject to customary government and regulatory approvals, is expected to close near the end of August 2018 and will be funded with debt.