The Timken Company (NYSE: TKR) today announced it has signed an agreement to sell the assets of its Needle Roller Bearings business, which primarily serves customers in the automotive original-equipment sector, to Japan's JTEKT Corporation in a cash transaction. The agreement is subject to customary regulatory approvals and certain closing conditions.
Upon closing, which is expected to occur by the end of 2009, Timken would receive approximately $330 million in cash for the business, subject to adjustments for working capital. Proceeds from the sale will provide increased liquidity and be used for general company purposes.
"This transaction is a major step forward in our strategy to transform our portfolio to focus on industrial sectors with strong aftermarkets," said James W. Griffith, Timken president and chief executive officer. "It positions us to concentrate our resources on areas where we can realize mutual value with our customers."
The Needle Roller Bearings business was part of the broader Torrington acquisition Timken made in 2003. The business has approximately 3,400 associates and manufactures highly engineered needle roller bearings, including an extensive range of radial and thrust needle roller bearings, as well as bearing assemblies and loose needles, for automotive and industrial applications. Facilities included in the agreement are:
- North America: Cairo, GA; Dahlonega, GA; Sylvania, GA; Greenville, SC; Walhalla, SC; and Bedford, Quebec, Canada.
- Europe: Brno and Olomouc, Czech Republic; Maromme, Moult, and Vierzon, France; Kuensebeck, Germany; and Bilbao, Spain.
- Asia: LiYuan District, China.