SKF announced last week that it has agreed with John Crane Safematic Oy, part of the Speciality Engineering Div. of Smiths Group plc, to pay 22.9 million (U.S. $28.8 million) for John Cranes lubrication systems business. The business is headquartered and manufactures in Muurame, Finland, and has sales offices in Sweden, Germany, the United States and Brazil.
The John Crane lubrication systems business had sales in 2005 of 25 million and has 127 employees. SKF, based in Goteborg, Sweden, is a leading global supplier of products and services in the business of rolling bearings and seals. The John Crane business will become part of SKFs lubrication systems business, in the companys Industrial Div.
SKF’s lubrication systems business was launched in July 2004, when it aquired the German firm Willy Vogel AG, one of the world’s leading manufacturers of centralized lubrication systems.
The products, segments served and geographical presence of this business [are] very complementary to SKFs existing lubrications systems business and will enable SKF to offer our customers a wider range of solutions and improved value propositions, the company said.
The acquisition is subject to regulatory approvals and is expected to be finalized in the third quarter.