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Swedish manufacturer SKF has agreed to acquire St. Louis, MO-based Lincoln Holdings Enterprises, Inc. for US$1 billion. Lincoln manufactures lubrication systems, tools and equipment under the Lincoln, Alemite and Reelcraft brands.
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"Lubrication systems is a very important business for SKF and also one of our technology platforms. Combined with our other platforms it enables us to help our customers reduce friction and energy consumption," says Tom Johnstone, SKF president and CEO. "The acquisition of Lincoln Industrial combined with our existing business will significantly improve our ability to further support our customers with even better solutions and give us a better geographical coverage."
Lincoln has a global footprint with around 50 percent of its sales generated in North America, 25 percent in Europe and 20 percent in Asia Pacific. The company is expected to generate sales of US$400 million in 2010.
Year-to-date, SKF has reported sales of SEK 45.6 billion (US$6.75 billion), an increase of 7.8 percent over the same period a year ago. Profit was SEK 3.95 billion (US$584.3 million), compared to SEK 1.2 billion (US$177.5 million) last year.
For the third quarter, sales increased 16.1 percent to SEK 15.5 billion (US$2.29 billion), driven primarily by increased volume. Profit was SEK 1.43 billion (US$211.5 million).