SKF acquires US-based lubrication systems company Lincoln Industrial
October 26, 2010 By Pulp & Paper Canada
SKF has agreed to acquire US-based lubrication systems provider Lincoln Holdings Enterprises, Inc. for US$1 bi…
SKF has agreed to acquire US-based lubrication systems provider Lincoln Holdings Enterprises, Inc. for US$1 billion on a cash and debt free basis from Harbour Group, a privately owned operating company based in St Louis, Missouri, USA. The transaction is subject to relevant regulatory approvals.
The acquisition includes all Lincoln, Alemite and Reelcraft entities and brands. Lincoln Industrial has around 2,000 employees and in 2010 the company is expected to generate sales approaching USD 400 million with an operating profit margin of around 24%.
Lincoln Industrial is complementary to SKF’s existing lubrication systems business with limited overlap when it comes to geographical sales coverage, technology and manufacturing footprint. In addition, Lincoln Industrial provides SKF with improved access to the lubrication tools and equipment aftermarket in North America.
Tom Johnstone, President and CEO of SKF, commented: “SKF has been building its lubrication systems business over a number of years and our team has done a great job in developing this as an important part of the SKF Group. The acquisition of Lincoln Industrial combined with our existing business will significantly improve our ability to further support our customers with even better solutions and give us a better geographical coverage.”
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