“The acquisition of Lincoln Industrial combined with our existing business will significantly improve our ability to further support our customers with even better solutions and give us a better geographical coverage,” SKF President and CEO Tom Johnstone said in a statement.

SKF announced the purchase alongside strong third quarter results. Sales rose 16.1 percent in the third quarter to 15.47 billion kronor ($2.32 billion) from 13.32 billion kronor last year. Net profit nearly tripled to 1.43 billion kronor from 483 million kronor in 2009.

The results easily beat expectations, with analysts polled by Dow Jones Newswires predicting the company would post a net profit of 1.21 billion kronor on sales growth of 11 percent.

The company continues to expect “significantly higher” demand for its products in the fourth quarter.

SKF describes Lincoln Industrial as “a leading supplier of lubrication systems, tools and equipment” including hose reels and grease guns.

The St. Louis-based company employs about 2,000 employees and is expected to generate sales of nearly $400 million in 2010, half in North America, 25 percent in Europe and 20 percent in Asia-Pacific.

“Lincoln Industrial is highly complementary to SKF’s existing lubrication systems business with limited overlap,” SKF said.

The deal, to be financed through existing cash and credit facilities, still requires approval from regulatory authorities.

Following the two announcements, SKF saw its share price surge 10.2 percent to 168 kronor in midday trading on a slightly positive Stockholm stock exchange.