Timken India Ltd, a majority-owned subsidiary of US-based The Timken Co., has entered into an agreement to buy ABC Bearings, an India-based manufacturer of tapered, cylindrical, and spherical roller bearings, as well as slewing rings.
“Timken is a leader in the growing Indian bearing market,” said Richard G. Kyle, President and CEO of Timken. “The acquisition of ABC Bearings will expand our capacity, our customer base, and our locally produced product breadth.”
Timken would also look to use ABC’s “competitive manufacturing footprint” to serve export market, Kyle continued.
At completion of the deal, ABC Bearings will be merged into Timken India, with ABC shareholders receiving shares in Timken India. Timken India will, however, remain majority owned by The Timken Co. and be consolidated into the US company’s financial results.
Both ABC Bearings and Timken India are currently listed on the Bombay Stock Exchange; Timken India is also listed on the National Stock Exchange of India.
ABC Bearings operates manufacturing facilities in the states of Gujarat and Uttarakhand, and had sales of around US$29 million in 2016. It serves an original equipment customer base in India, focusing on the heavy-truck and off-highway industries.
The transaction is subject to receipt of various approvals in India, which are expected to take at least six months to complete.
Read the article online at: https://www.worldcement.com/indian-subcontinent/10072017/timkin-expands-presence-in-india-with-acquisition/