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SKF

Swedish bearings giant buys US firm Kaydon

Sweden's SKF, the world's biggest maker of industrial bearings, announced on Thursday it had acquired US bearings manufacturer Kaydon for $1.25 billion (€948 million).

Swedish bearings giant buys US firm Kaydon

SKF, which will pay a 22-percent premium on Kaydon’s closing stock price Wednesday on the New York Stock Exchange, highlighted in a statement the “complementary nature of their products and technologies.”

SKF, which also makes sealants, is an important supplier to many parts of the industrial processing chain.

Kaydon reported sales of $475 million in 2012, or about a 20th of SKF’s sales.

“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 said.

The transaction, which has been approved by the two companies’ boards, will

be an all-cash transaction and includes $95 million of debt.

AFP/The Local/pvs

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SKF

Industry bails on Swedish ball bearings

Swedish ball bearing manufacturer SKF announced Tuesday a decrease of its net profit in the third quarter, amid lower-than-expected sales in its industrial business.

Industry bails on Swedish ball bearings

The company’s earnings shrank by 8 percent to 1.123 billion kronor ($173 million) compared to the same period of 2012, and fell short of the 1.27 billion kronor profit expected by analysts interviewed by Dow Jones Newswires.

This is the eighth consecutive quarter with a year-on-year decline in earnings.

“Our cash flow was good in the quarter,” chief executive Tom Johnston said. “We continued to improve our operating margin sequentially despite the negative mix and a stronger than expected currency headwind.”

“SKF sales in the quarter developed well within our automotive business but were somewhat lower than expected in our industrial business.”

Sales climbed by 1 percent to 15.623 billion kronor.

“We see a positive development in our aerospace, renewable energy and railway businesses. However, we see some lack of traction in a number of other industrial markets,” Johnston added.

SKF expects to “rapidly” close the $1.25 billion acquisition of American bearing manufacturer Kaydon Corporation, which it announced last September.

AFP/The Local/og

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