Timken Signs Agreement to Sell Needle Roller Bearings Business to JTEKT

Published July 30th, 2009 - 08:34 GMT

The Timken Company (NYSE: TKR) today announced it has signed an agreement to sell the assets of its Needle Roller Bearings business, which primarily serves customers in the automotive original-equipment sector, to Japan’s JTEKT Corporation in a cash transaction. The agreement is subject to customary regulatory approvals and certain closing conditions.
Upon closing, which is expected to occur by the end of 2009, Timken would receive approximately $330 million in cash for the business, subject to adjustments for working capital. Proceeds from the sale will provide increased liquidity and be used for general company purposes.
“This transaction is a major step forward in our strategy to transform our portfolio to focus on industrial sectors with strong aftermarkets,” said James W. Griffith, Timken president and chief executive officer. “It positions us to concentrate our resources on areas where we can realize mutual value with our customers.”
The Needle Roller Bearings business was part of the broader Torrington acquisition Timken made in 2003. The business has approximately 3,400 associates and manufactures highly engineered needle roller bearings, including an extensive range of radial and thrust needle roller bearings, as well as bearing assemblies and loose needles, for automotive and industrial applications. Facilities included in the agreement are:
• North America: Cairo, GA; Dahlonega, GA; Sylvania, GA; Greenville, SC; Walhalla, SC; and Bedford, Quebec, Canada.
• Europe: Brno and Olomouc, Czech Republic; Maromme, Moult, and Vierzon, France; Kuensebeck, Germany; and Bilbao, Spain.
• Asia: LiYuan District, China.
Notice of Conference Call and Further Information:
The company will host its quarterly earnings conference call for investors and analysts, during which management will discuss the planned divestiture.
Conference Call:     Wednesday, July 29, 2009
   
  11 a.m. Eastern Time
   
All Callers:   Live Dial-In: 800-344-0593 or 706-634-0975
  (Call in 10 minutes prior to be included.)
  Conference ID: 68491744
  Replay Dial-In through Aug. 7, 2009:
  800-642-1687 or 706-645-9291
 
Live Webcast:   www.timken.com/investors

Additional information about Timken, the Needle Roller Bearings business and JTEKT is available online at www.timken.com/needlebearings.


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