The Timken Co., an Ohio-based provider of engineered bearings and power transmission products, has reached an agreement to acquire BEKA Lubrication, a global supplier of automatic lubrication systems, for approximately $165 million.
BEKA serves a range of industrial sectors, including wind, food and beverage, rail, on- and off-highway, and other process industries. BEKA sales are expected to be around $135 million for full-year 2019.
“The acquisition of BEKA expands our global leadership in the highly attractive automatic lubrication systems market sector, increases our geographic scale and market coverage in Europe and Asia, and will create new opportunities to serve wind and other industrial end markets more fully,” says Richard G. Kyle, Timken president and CEO.
Family-owned/operated since its founding in 1927, BEKA is headquartered in Pegnitz, Germany.
Timken first entered the automatic lubrication market in 2013 with the acquisition of Interlube and then significantly expanded its portfolio and global reach through the acquisition of Groeneveld in 2017.
The privately negotiated transaction, which is subject to regulatory review approval in Germany, 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.