The Timken Co. recently announced that it has reached an agreement to acquire Beka Lubrication, a global supplier of automatic lubrication systems, for approximately $165 million. With the acquisition, Timken will become the world's second largest producer of industrial automatic lubrication systems.
"The acquisition of Beka expands our global leadership in the highly attractive automatic lubrication systems market sector, increases our geographic scale and market coverage in Europe and Asia, and will create new opportunities to serve wind and other industrial end markets more fully," said Richard G. Kyle, Timken president and chief executive officer. "Beka is a premier brand and technical leader, and like our Groeneveld business, offers automatic and central lubrication systems that reduce operating costs and extend equipment life. We expect to realize significant synergies, margin expansion and revenue growth opportunities through the combined Groeneveld-Beka business."
Family owned and operated since its founding in 1927, Beka is headquartered in Pegnitz, Germany. The company serves a diverse range of industrial sectors, including wind, food and beverage, rail, on- and off-highway, and other process industries, with sales of nearly $135 million expected for 2019. Beka employs approximately 900 people, with manufacturing, research and development based in Germany, and assembly facilities and sales offices around the world.
Timken first entered the automatic lubrication market in 2013 with the acquisition of Interlube and then significantly expanded its portfolio and global reach through the acquisition of Groeneveld in 2017. The Beka acquisition will advance Timken’s strategy of growing its leadership position in engineered bearings while diversifying its portfolio into adjacent products and markets. The transaction is subject to regulatory review approval in Germany and is expected to close during the fourth quarter of 2019.
For more information, visit www.timken.com.
