Timken India set to acquire ABC Bearings
Timken India, a subsidiary of NYSE-listed The Timken Company, a world leader in engineered bearings and mechanical power transmission products, seems well set to acquire ABC Bearings, is a manufacturer of tapered, cylindrical and spherical roller bearings, and slewing rings.
The company has entered into a definitive agreement to acquire ABC Bearings through a court-approved amalgamation process. This transaction is subject to both the company’s approvals of shareholders, regulatory agencies and the stock exchanges. The accord is expected to come through over the next few months.
ABC Bearings operates primarily out of manufacturing facilities in Bharuch, Gujarat, and Dehradun, Uttarakhand. It serves an established original equipment customer base in India, focusing on heavy truck and off-highway industries. The firm notched up a turnover of nearly Rs190 crore in 2016-2017.
“Timken is a leader in the India bearing market and the acquisition of ABC Bearings will expand our capacity, our customer base and our locally produced product breadth,” said Richard G Kyle, Timken president and chief executive officer, adding, “The demand for bearings in India is growing, and the addition of ABC Bearings will provide us with the ability to increase participation in local and export markets.”
Sanjay Koul, chairman and managing director of Timken India, on his part, said, “The prospective merger demonstrates our commitment to invest in and grow our business in India. The addition of the ABC Bearings’ portfolio will strengthen our innovative and competitive solutions to serve our customers.”
Timken India’s local operations include a state-of-the-art bearing manufacturing facility in Jamshedpur, Jharkhand, and gear service center in Raipur and Chhattisgarh.
Ritwik Mukherjee