Kaydon Corporation (www.kaydon.com) has acquired Avon Bearings Corporation (www.avonbearings.com) in a cash transaction valued at $55 million.
Kaydon Corporation is a designer and manufacturer of custom-engineered, performance-critical products, supplying a broad and diverse group of industrial, aerospace, medical and electronic equipment, alternative-energy, and aftermarket customers.
Avon is a custom designer and manufacturer of high precision large diameter turntable bearings. Avon also remanufactures bearings, sells replacement bearings, and is known globally for its focus on engineering support, product quality, and proprietary manufacturing capabilities.
The acquisition of Avon is expected to be accretive to Kaydon’s earnings within the first full year of ownership and immediately accretive to cash earnings. Avon is expected to add approximately $30 million to Kaydon’s fiscal 2008 sales.
“This strategic acquisition represents an important step for Kaydon in accelerating growth in our market-leading bearings business,” James O’Leary, president and chief executive officer of Kaydon said. O’Leary added “It will add immediate capacity to our growing wind energy platform while both strengthening existing customer relationships and adding others. In addition, Avon will broaden our presence in important offshore crane, construction and steel markets for very large diameter bearings, while also providing access to the refurbishment market where Avon has built a leadership position over many years.”
This acquisition complements Kaydon’s current and expanding manufacturing capabilities, and combined with previously announced major capital investment programs, will enable Kaydon to become the largest manufacturer of slewing ring bearings in North America.