Swedish bearings maker SKF Group finalized a deal Thursday to buy Ann Arbor-based Kaydon Corporation in a $1.25 billion deal.
SKF, the world’s biggest bearings maker, said the deal includes $95 million of net debt and will be paid with cash on hand. The terms of the agreement call for SKF to pay $35.50 per share for Kaydon.
SKF CEO Tom Johnstone released the following statement about the deal:
We have followed the development of Kaydon for a long time. They have a strong product portfolio, strong management and a solid financial performance and I am delighted that they will soon be part of the SKF Group. The complementary nature of their products and technologies, their geographical and customer presence and their manufacturing footprint will enable us to even better serve our customers and distributors in the industrial market worldwide.
SKF has more than 46,000 employees across 130 countries. The company was founded in 1907.
Headquartered at 2723 S. State St., just north of Eisenhower Parkway, Kaydon employs about 2,100 employees and has plants in Muskegon, South Carolina, Ohio and Mexico. The company designs and manufacturers products such as bearings, safety shock absorbers, velocity controls, gas springs and rotary dampers.
Kaydon's sales totaled $475 million in 2012, and $117.3 million in the second quarter of 2013.
"We believe that this transaction represents an excellent strategic fit for Kaydon that will allow our market leading businesses to accelerate their growth strategies by joining forces with SKF, a global industry leader," Kaydon CEO James O’Leary said in a statement.
The agreement was unanimously approved by both companies’ Board of Directors and the deal is expected to close in the fourth quarter.
Lizzy Alfs is a business reporter for AnnArbor.com. Reach her at 734-623-2584 or email her at lizzyalfs@annarbor.com. Follow her on Twitter at http://twitter.com/lizzyalfs.
