The Timken Co. reports it completed the sale of its Needle Roller Bearings business to JTEKT Corp. for approximately $330 million. It said the proceeds of the sale will be used for general company purposes, including liquidity.
JTEKT is a Japanese manufacturer of steering systems, driveline components, bearings, and machine tools.
Needle Roller Bearings manufactures needle roller bearings for automotive and industrial applications. Its sales totaled approximately $289 million from January through September 2009, with a loss of about $59 million.
Timken acquired the Needle Roller Bearings business through its 2003 acquisition of The Torrington Co. Its North American operations are in Cairo, Dahlonega, and Sylvania, GA; Greenville and Walhalla, SC; and Bedford, Quebec. It’s European operations are in Brno and Olomouc, Czech Republic; Maromme, Moult, and Vierzon, France; Kuensebeck, Germany; and Bilbao, Spain. It has an Asian operation in China’s LiYuan District.
“The completion of this deal is a win for everyone involved,” stated Timken president and CEO James W. Griffith. “The Needle Roller Bearings business’ new owner is committed to the automotive industry, which provides new opportunity to customers and the talented associates who are transferring with the deal.
Griffith said Timken has “fundamentally changed” its business portfolio, in a strategy to optimize the enterprise. “The resources now in hand can be used to create greater value for our customers and shareholders, including pursuit of new growth in attractive industrial sectors,” he said.