SKF has signed an agreement to divest its Kaydon velocity control business to Stabilus, a global supplier to the automotive and industrial markets.
Kaydon’s bearing business will remain in the company. The Kaydon velocity control business, which includes the ACE, Hahn Gasfedern, Fabreeka and TechProducts brands, had sales in 2015 of approximately USD $120 million and 550 employees. The total consideration of the transaction is US€ 339 million, on a cash and debt free basis, and is expected to close during the summer of 2016.
Stabilus, based in Koblenz, Germany, develops and produces electromechanical drives, as well as gas springs and hydraulic dampers. ‘This is a significant step in our efforts to focus on our core bearing business, a process which has been on-going for the past 12 months,’ said Christian Johansson, senior vice president and CFO. ‘The Kaydon velocity control business is a well-managed, stand-alone operation. Under Stabilus’ ownership, it has the ability to reach its full potential.
‘Following the divestment announced today, the Kaydon bearing business will be fully integrated into the SKF operational structure, strengthening our value propositions in key industrial segments. The Kaydon bearing business is one that complements our own, from a manufacturing footprint, customer segment and technology perspective. The former Kaydon headquarters in Ann Arbor, Michigan, will be closed.’
This story is reprinted from material from SKF, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.