SKFs (STO:SKFA)(STO:SKFB)(LSE:SKFB)(Pink Sheets:SKFRY) acquisition of Lincoln Holdings Enterprises (below referred to as Lincoln Industrial), a leading supplier of lubrication systems and tools, has now been approved by the relevant antitrust authorities. SKF pays around USD 1 billion on a cash and debt free basis for Lincoln Industrial. The acquisition is supposed to be finalized by the end of the year.
Lincoln Industrial is headquartered in St. Louis, Missouri, USA and has around 2,000 employees. In 2010 the company is expected to generate sales approaching USD 400 million with an operating profit margin of around 24%. The company will be part of a newly created business unit for lubrication systems within SKFs Industrial Division.
Lincoln Industrial will be included in the SKF balance sheet as per year-end 2010 and will be reported as operationally part of SKF from the first quarter 2011.
This acquisition is in line with our strategy to grow in the lubrication systems market, and Lincoln Industrial complements SKFs existing lubrication systems business in a very good way. With this acquisition we broaden our competencies within this area and we will be able to support our customers with even better solutions, says Tom Johnstone, SKF President and CEO.
The SKF Group will incur costs of around SEK 100 million related to this transaction in the fourth quarter 2010.
AB SKF may be required to disclose the information provided herein according to the Securities Markets Act and/ the Financial Instruments Trading Act. The information was submitted for publication at 12.15 CET on 23 December 2010.
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 15,000 distributor locations worldwide. Annual sales in 2009 were SEK 56,227 million and the number of employees was 41,172. www.skf.com
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