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SKF to acquire General Bearing

ABR Staff Writer Published 14 February 2012

SKF, a supplier of bearings, seals, mechatronics, services and lubrication systems, has signed an agreement to acquire US-based General Bearing (GBC) for $125m.

The company said that the transaction is subject to relevant regulatory and shareholder approvals.

As per the deal, GBC will continue to operate as an independent subsidiary within the SKF Group, which also operates with the PEER brand, which was acquired by SKF in 2008.

SKF president and CEO Tom Johnstone said he is delighted with the acquisition of GBC which market using The General and Hyatt brands.

"Under David Gussack's leadership GBC has very successfully developed their business serving the automotive and heavy duty markets in USA utilising their factories in China," Johnstone said.

"The acquisition of GBC is fully in line with our strategy to develop our product offering with complementary brands enabling us to better serve these important markets."

Last year, GBC expected its sales to be around $155m, with an operating margin in line with the SKF Group.

GBC chairman and CEO David Gussack said the company is pleased to be joining the SKF Group and look forward to continuing to contribute to profitable growth in the bearing sector.

"Our focus on cost-effective overseas production and our proven track record of successfully operating in China will enable the SKF Group to further develop other markets previously not fully addressed by the SKF brand," Gussack said.