SKF AB (SKFB), the world’s largest maker of bearings, agreed to buy Kaydon Corporation for $1.25 billion to expand its U.S. operations and add velocity control products and environmental services.
SKF offers to buy all of Kaydon’s outstanding stock for $35.50 per share in cash, representing a 22 percent premium to its closing stock price yesterday, the company said in an e-mailed statement today.
SKF has said it wants to expand in North America as industrial growth and modest wage increases make the region more attractive for major investments this year than China. SKF, which has more than 46,000 employees across 130 countries, opened its second U.S.-based Solution Factory in Cleveland last year.
Kaydon generates 62 percent of its sales in North America. In 2012, the company had sales of $475 million with more than 2,100 employees.
“This acquisition, combined with our other activities, investments and acquisitions in the last few years, shows our strong commitment to the North American market,” SKF Chief Executive Officer Tom Johnstone said today.
The tender offer will start on Sept. 16. and the transaction is expected to close in the fourth quarter, the company said.
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