SKF sells Kaydon velocity controls business for $339m
SKF is selling its Kaydon velocity control business to Stabilus for $339m. SKF acquired the business as part of the Kaydon Corporation, which it bought for $1.25bn in 2013.
Last year, the velocity control business – which includes Ace shock absorbers, Hahn Gasfedern gas springs, Fabreeka vibration insulation products and TechProducts vibration and noise control equipment – achieved an Ebit of around $30m on sales about $120m. It has 550 employees, and operates four production sites in Europe, three in the US, and one in China.
SKF plans to integrate Kaydon’s bearings business into its existing structure, and to close Kaydon’s former headquarters in Michigan.
“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,” says SKF senior vice-president and chief financial officer, Christian Johansson. “The Kaydon velocity control business is a well-managed, stand-alone operation. Under Stabilus’ ownership, it has the ability to reach its full potential.
“The Kaydon bearing business,” he adds, “is one that complements our own, from a manufacturing footprint, customer segment and technology perspective.”
Stabilus, a global supplier to the automotive and industrial markets with headquarters in Germany, develops and manufactures electromechanical drives, as well as gas springs and hydraulic dampers. It says that the acquisition will diversify is product offering and improve the balance between its automotive and capital goods activities
The deal is expected to close within a few months.