CANTON, Ohio — The Timken Co. has agreed to acquire privately held Drives LLC for $92 million in cash. Based in Fulton, Ill., Drives is a leading manufacturer of highly engineered drive-chains, roller-chains and conveyor augers for the agricultural and industrial marketplace. The company posted sales of approximately $100 million in the past 12 months, with 430 employees in North America.
"The Drives business brings significant expertise in precision-engineered chain and related products, especially among global equipment manufacturers in agricultural and food processing," said Christopher Coughlin, president of Timken’s Process Industries segment. "Adding Drives will enhance our overall product portfolio for the industrial process and mobile markets and offers plenty of upside as we extend their line in the marketplace using Timken’s global infrastructure."
Timken has been steadily expanding its product offering and capabilities to provide value-added solutions for a diverse range of machinery applications. This purchase–along with Timken’s recent acquisitions of Philadelphia Gear and QM Bearings–further increases the breadth of Timken’s mechanical power transmission product offering and moves the company well beyond its original focus on bearings.
This acquisition follows closely on the heels of two other major announcements from Timken in the past week. The company also announced a new partnership with The University of Akron, focusing on accelerated commercialization of specialized engineering research, as well as a proposed $225 million investment to expand capacity at its Faircrest Steel Plant in Ohio.
Coughlin noted that Drives’ engineered products are also vital to mobile and industrial machinery in oil and gas; aggregate and mining; primary metals; forest products; and other heavy industries. Also attractive to Timken is the firm’s strength in food and beverage and the packaged goods sectors, which require high-end, specialty products such as stainless-steel and corrosion-resistant roller chains.
"Because this adjacent technology complements our existing portfolio, it should allow us to offer a more complete market solution to deliver greater value to our customers and shareholders," Coughlin said.
Timken expects to complete the transaction within approximately 30 days, pending certain government and regulatory approvals. The acquisition should be accretive to Timken earnings in its first full year.
