The Timken Co., the engineered bearings and power transmission products manufacturer, has reached an agreement to acquire BEKA Lubrication, a global supplier of automatic lubrication systems, for approximately US$165 million. The company serves a range of industrial sectors including rail, on- and off-highway and other process industries.
BEKA sales are expected to be around US$135 million for the full year 2019. The privately negotiated transaction is subject to regulatory review approval in Germany and is expected to close during the fourth quarter of this year. It will be funded with cash and existing debt facilities. Timken expects the transaction to be accretive to earnings in 2020.
Family owned and operated since its founding in 1927, BEKA is headquartered in Pegnitz, Germany. The company employs approximately 900 people, with manufacturing, research and development based in Germany, and assembly facilities and sales offices around the world.
Timken first entered the automatic lubrication market in 2013 with the acquisition of Interlube and then expanded its portfolio and global reach through the acquisition of Groeneveld in 2017.