Sweden's SKF buys Lincoln Industrial for one billion dollars

STOCKHOLM: Sweden's SKF, the world's biggest maker of industrial bearings, announced Tuesday the purchase of Lincoln Industrial, a US-based engineered lubrication systems maker, for one billion dollars (718.6 million euros).

"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," SKF chief executive Tom Johnstone said in a statement.

SKF, which announced the purchase alongside strong third quarter results, described Lincoln Industrial as "a leading supplier of lubrication systems, tools and equipment" including hose reels and grease guns.

The St. Louis-based company counts some 2,000 employees and is this year expected to generate sales amounting to nearly 400 million dollars, half of them in North America, 25 percent in Europe and 20 percent in Asia-Pacific.

"Lincoln Industrial is highly complementary to SKF's existing lubrication systems business with limited overlap," SKF said.

The deal, to be paid through existing cash and credit facilities, still needs the go-ahead from regulatory authorities.