GÖTEBORG, Sweden--Regulatory News:
SKF (STO:SKFA)(STO:SKFB)(Pink Sheets:SKFRY)(LSE:SKFB) has signed an agreement, subject to regulatory approvals, to divest its Kaydon velocity control business to Stabilus, a global supplier to the automotive and industrial markets. Stabilus develops and produces electromechanical drives, as well as gas springs and hydraulic dampers. The company has its operational headquarters in Koblenz, Germany and is listed on the SDAX index of the Frankfurt Stock Exchange.
The total consideration of the transaction is USD 339 million, on a cash- and debt-free basis, and it is expected to close during the summer of 2016.
Christian Johansson, Senior Vice President and CFO, says, “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. 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.“
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.
Aktiebolaget SKF (publ)
AB SKF is required to disclose the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08:30 on 26 April 2016.
SKF is a leading global supplier of bearings, seals, mechatronics, lubrication systems, and services which include technical support, maintenance and reliability services, engineering consulting and training. SKF is represented in more than 130 countries and has around 17,000 distributor locations worldwide. Annual sales in 2015 were SEK 75 997 million and the number of employees was 46 635. www.skf.com
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