SKF has anti-trust clearance from U.S. and German regulators to proceed with its planned acquisition of Kaydon Corporation. Noting the ongoing U.S. federal government shutdown, SKF waived the condition for approval of the Committee on Foreign Investment in the United States (CFIUS) under U.S. national security regulations, and now indicates that administrative delays will extend the period for clearance.
However, SKF said it has no indication that there will be any delays in the review process.
Gothenburg, Sweden-based SKF manufactures bearings, seals, mechatronics, and lubrication systems, and provides technical support, maintenance, and reliability services, engineering, consulting, and training. It announced the $1.25-billion cash acquisition of Kaydon on September 5.
The tender offer to Kaydon Corp. shareholders —$35.50/share — is due to expire on October 15.
Kaydon designs and manufactures bearings and “velocity control” products, like industrial shock absorbers, gas springs and vibration isolation devices, as well as filters and filtrations systems, and custom rings and seals.
“The complementary nature of their (Kaydon’s) products and technologies, their geographical and customer presence and their manufacturing footprint will enable us to even better serve our customers and distributors in the industrial market worldwide,” Tom Johnstone, SKF president and CEO explained last month. “In particular this acquisition, combined with our other activities, investments and acquisitions in the last few years, shows our strong commitment to the North American market.”