Timken Co. reached an agreement to acquire Pegnitz, Germany-based automatic lubrication system supplier Beka Lubrication for approximately $165 million, the company announced this week.
North Canton, Ohio-based Timken claims the acquisition makes it the worlds second-largest producer of industrial automatic lubrication systems, based on industry estimates. Timkens main market is manufacturing engineered bearings and power transmission products.
Beka serves a number of industries, including the industrial, wind and food markets, and its sales are expected to be approximately $135 million for all of 2019, according to Timken.
“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 Timken President and CEO Richard Kyle in a company press release issued Sept. 16.
Timken entered the lube market with the acquisition of Cincinnati, Ohio-based Interlube Corp., an industrial lube distributor, in 2013. It also acquired automatic lubrication system supplier Groenveld Lubrication Solutions, headquartered in Gorinchem, the Netherlands, in 2017 for $280 million.
Timken said the Beka acquisition will help grow its engineered bearings business while also expanding its presence in adjacent markets.
The transaction is subject to regulatory review and approval in Germany, is expected to close during the fourth quarter of this year, and will be funded with cash and existing debt facilities.