Addition will create unmatched portfolio of
precision drives
NORTH
CANTON, Ohio, Aug. 5, 2024
/PRNewswire/ -- The Timken Company (NYSE: TKR; www.timken.com), a
global technology leader in engineered bearings and industrial
motion, has agreed to acquire CGI Inc., a Nevada-based manufacturer of precision drive
systems serving a broad range of automation markets with a
concentration in medical robotics. The deal is subject to customary
closing conditions, including regulatory approval, and is expected
to close in the third quarter.
"Timken has one of the broadest and most differentiated
precision drive product portfolios in the global automation
industry," said Christopher
Coughlin, executive vice president and president of
Industrial Motion. "Driven by our strength in operational
excellence, growing global footprint and expanding engineering
expertise, we are well positioned for growth in attractive markets
such as medical, solar, factory automation, aerospace, general
industrial and more.
"CGI's precision motion-control offerings closely complement our
Cone Drive harmonic and Spinea cycloidal products. With an
attractive product portfolio, strong presence in high-growth
medical applications, state-of-the-art manufacturing and
consistently strong operating margins, the CGI acquisition is a
good strategic fit for Timken that will help us continue to build
on our 125-year legacy of innovation."
Timken entered the precision drives space in 2018 by acquiring
Cone Drive and expanded its capabilities in 2022 by adding Spinea.
These acquisitions were a direct result of Timken's strategy to
diversify and expand its capabilities in industrial motion. Cone
Drive and Spinea solutions enable a wide range of applications and
are helping to drive Timken's growth in automation, which ranked as
the company's second-largest individual end-market sector in 2023.
The addition of CGI will further bolster Timken's position as a
global leader in automation and robotic solutions.
CGI is a family-owned business founded in 1967 with
headquarters and production facilities in Carson City, Nevada. The company employs
approximately 130 people and is expected to generate around
$45 million in sales in 2024.
Timken will fund the transaction with a combination of cash on
hand and existing committed credit facilities.
About The Timken Company
The Timken Company (NYSE: TKR; www.timken.com), a global
technology leader in engineered bearings and industrial motion,
designs a growing portfolio of next-generation products for diverse
industries. For 125 years, Timken has used its specialized
expertise to innovate and create customer-centric solutions that
increase reliability and efficiency. The company posted $4.8
billion in sales in 2023 and employs more than 19,000 people
globally, operating from 45 countries. Timken is one of
the World's Most Innovative Companies, according
to Fast Company, and has been recognized
among America's Most Responsible Companies, America's
Greatest Workplaces and America's Greatest Workplaces for
Diversity by Newsweek, Best Companies to Work
For by U.S. News & World Report,
the World's Most Ethical Companies® by
Ethisphere and America's Most Innovative
Companies by Fortune.
Safe Harbor
Certain statements in this release (including statements
regarding the company's forecasts, estimates, plans and
expectations) that are not historical in nature are
"forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995. In particular, the
statements related to expectations regarding the expected future
financial performance of the newly acquired business are
forward-looking. The company cautions that actual results may
differ materially from those projected or implied in
forward-looking statements due to a variety of important factors,
including: the inability to complete the acquisition due to either
the failure to satisfy any condition to the closing of the
transaction, including receipt of regulatory approval, or the
occurrence of any event, change or other circumstance that could
give rise to the termination of the purchase agreement; the
inability to successfully integrate the newly acquired business
into the company's operations or achieve the expected synergies
associated with the acquisition; negative impacts to the newly
acquired business as a result of global conflicts and hostilities;
and adverse changes in the markets served by the newly acquired
business. Additional factors are discussed in the company's filings
with the Securities and Exchange Commission, including the
company's Annual Report on Form 10-K for the year ended
Dec. 31, 2023, quarterly reports on
Form 10-Q and current reports on Form 8-K. Except as required by
the federal securities laws, the company undertakes no obligation
to publicly update or revise any forward-looking statement, whether
as a result of new information, future events or otherwise.
Media Relations:
Scott Schroeder
234.262.6420
scott.schroeder@timken.com
Investor Relations:
Neil
Frohnapple
234.262.2310
investors@timken.com
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SOURCE The Timken Company