SKF’s Acquisition of Lincoln Industrial Approved

Noria news wires

SKF’s 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 US$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, Mo., and has approximately 2,000 employees. In 2010, the company is expected to generate sales approaching US$400 million with an operating profit margin of around 24 percent. The company will be part of a newly created business unit for lubrication systems within SKF’s 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.

“We are very excited to welcome Lincoln Industrial to SKF. This acquisition is in line with our strategy to grow in the lubrication systems market, and Lincoln Industrial complements SKF’s 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 approximately SEK 100 million related to this transaction in the fourth quarter 2010.

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