Lack of successor sees Henk Groeneveld seek best fit for his company's future
US bearings and transmissions firm Timken has bought lubrications specialist Groeneveld Group for US$280 million (A$368 million).
The purchase gives Timken a point of diversification that includes the Dutch company’s small telematics business, Groeneveld ICT.
“The acquisition of Groeneveld will further expand our presence in the automatic lubrication systems space, which we entered in 2013 with our acquisition of Interlube,” Timken president and CEO Richard G Kyle says.
“Groeneveld will bring a strong brand and management team, a global customer base and an industry-leading product portfolio that has an attractive market position in off-highway equipment and heavy trucks.”
“We’re excited to be gaining such a well-known and respected business with a differentiated value proposition, deep customer relationships and a talented workforce,”
As part of the transaction, Henk Groeneveld, sole shareholder and non-executive president, will be retiring from the company.
“Henk led Groeneveld for four decades and made it the company it is today, and he has put in place a great leadership team,” Kyle says.
“We wish Henk and his family well in retirement.”
Groeneveld Group states that Henk Groeneveld has no successor within the family, and therefore decided to find a strong parent company to take the company into the future.
“I am proud that Groeneveld becomes part of Timken, a great company, which is in the benefit of all stakeholders, including employees, customers and suppliers,” he says.
The transaction is expected to close in early July and will be funded with a combination of cash and debt.
Timken points out that it has diversified its portfolio beyond bearings over the last five years, adding gearboxes, chain, belts, couplings, lubrication systems, industrial clutches and brakes, and a variety of industrial services to its portfolio.
These product lines are marketed under industrial brands that include Timken, Philadelphia Gear, Drives, Lovejoy and Interlube.