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The Timken Company, Canton, OH, has signed a definitive agreement to sell Kilian Manufacturing Corporation and its affiliate, Kilian Canada ULC, to an affiliate of Genstar Capital, L.P., a private investment firm, and members of Kilian's management team. Kilian produces machined-race bearings, including ball and roller bearings and assemblies, for broad industrial and automotive applications, and in 2003 had net sales of approximately $40 million.
"Kilian is an excellent business, and we are pleased to have found a strong buyer that will enable it to continue to grow," said James W. Griffith, president and CEO. "While Kilian is not a strategic fit for The Timken Company since its products and applications are outside our traditional areas, we believe Kilian will benefit from a management team focused solely on its products and its industry. At Timken, we will continue to focus on achieving profitable growth worldwide by providing innovative solutions, products and services that meet the unique needs of our customers."
The transaction is expected to close in October 2004. Timken expects to use the proceeds from the sale of Kilian to pay down debt and for other corporate purposes.
"We are very excited about the potential of this business," said William Duff, president and COO of Kilian Manufacturing Corporation. "Kilian has a wide customer base of nearly 500 OEM's, expertise in designing custom solutions for its large customer base, and strong engineering and manufacturing capabilities. We expect to leverage all of these strengths to further enhance Kilian as a successful, profitable enterprise."
"With management's experience in building basic industrial businesses, Genstar believes that we can further build upon Kilian's market-leading position in North America to capitalize on new opportunities to deliver growth both organically and through add-on acquisitions and ultimately deliver value for Kilian's customers and shareholders," said Jean-Pierre L. Conte, chairman and managing director of Genstar Capital, L.P.
Founded in 1922, Kilian employs 344 at manufacturing facilities in Syracuse, NY and Toronto, Canada. Its products are used in such diverse applications as sliding and overhead doors, furniture, appliances, conveyors and automotive steering. Kilian was acquired by The Torrington Company in 1975. Timken acquired Torrington in 2003. Based in San Francisco, Genstar Capital is a private-equity investment firm that makes leveraged investments in companies. Genstar Capital has more than $400 million of committed capital under management. The Timken Company is a global manufacturer of highly engineered bearings and alloy steels and a provider of related products and services with operations in 27 countries. The company recorded 2003 sales of $3.8 billion and employed approximately 26,000 at year-end.