Posted to News on 12th Jan 2007, 20:46
SKF acquires Lincoln Holdings Enterprises Inc
SKF has signed an agreement to acquire leading USA-based lubrication systems provider Lincoln Holdings Enterprises Inc in a move to strengthen still further its product offering and range of services. Subject to relevant regulatory approvals, SKF will purchasing the business for $1billion on a cash and debt-free basis from Harbour Group, a privately owned operating company based in St Louis, Missouri, USA.
Established over 100 years ago, Lincoln Industrial, as it will now be known, employs around 2000 people in the design, manufacture and supply of precision engineered lubrication systems, tools and equipment. The company has a global presence, with around 50 per cent of its sales generated in North America, 25 per cent in Europe and 20 per cent in Asia, with manufacturing operations on each continent. In 2010, Lincoln Industrial is expected to generate sales approaching $400million, with an operating profit margin of around 24 per cent.
Including its market-leading brands Lincoln, Alemite and Reelcraft, Lincoln Industrial's three main product lines comprise automated lubrication systems, hose reels, and grease guns, with a focus on grease-based systems. Most of Lincoln's current business is generated from automated lubrication systems and its major end markets include industrial, energy, off-highway, mining, agriculture and steel, enabling SKF to extend significantly its product offering and associated expertise and support in these key sectors.
SKF's President and CEO, Tom Johnstone, comments: "Lubrication systems is a particularly important business for SKF and also one of our key technology platforms. Combined with our other platforms it enables us to help our customers reduce friction and energy consumption. We have been building our lubrication systems business steadily in recent years and our team has succeeded in developing this to form an essential part of the SKF Group. The acquisition of Lincoln Industrial, combined with our existing products and services, will now significantly improve our ability to support customers around the world with high-quality lubrication solutions. We have been following the success of Lincoln Industrial over a number of years and I am delighted that the Lincoln team will soon be joining the SKF Group."
Bart A Aitken, President and CEO of Lincoln, adds: "We are excited that SKF has acquired Lincoln Industrial and look forward to fully supporting the further development of the Group. As a company, we have developed exceptionally well over a number of years, with particularly strong growth and financial performance. The combination of Lincoln Industrial with the current SKF lubrication systems business and customer base will provide significant growth and value creation opportunities."
