The Timken Company Acquires Romanian Bearing Maker
17 December 1997
The Timken Company Acquires Romanian Bearing Maker
CANTON, Ohio, Dec. 17 -- Continuing to expand its ability to
serve customers worldwide, The Timken Company has signed a
definitive agreement to acquire a bearing manufacturer in Romania.
Rulmenti Grei S.A., located 40 miles (60 km) north of Bucharest in
Ploesti, produces bearings used in a wide range of industrial applications,
including steel and aluminum rolling mills, paper mills, marine systems, and
oil and gas production. In addition to serving customers in Romania, Rulmenti
Grei S.A. exports to customers in Eastern and Western Europe, Asia and North
America.
"This acquisition further strengthens our manufacturing network in Europe
and expands our marketing reach," said Joseph F. Toot, Jr., chief executive
officer and president for The Timken Company. "Combined with our plants in
Poland, Italy, France and England as well as a major distribution center in
Germany, we are well-positioned to provide excellent service and products to
customers throughout the region."
Rulmenti Grei S.A. has been 70 percent owned by Romania's State Ownership
Fund and 30 percent by private investment groups and individuals. Timken is
paying $37 million for the 70 percent owned by the government. However,
Romania's privatization process returns 60 percent of the purchase price back
into the development of the firm.
"As with other acquisitions," said Robert L. Leibensperger, executive vice
president and president-bearings for The Timken Company, "we will be working
to strengthen Rulmenti Grei by introducing advanced technology and
manufacturing processes. Over the next five years, we will match the Romanian
privatization reinvestment in the enterprise to establish Ploesti as a major
technical center for the design and manufacture of bearings for industrial
applications. The output will be substantially above the current level."
"Our dealings with Romania's State Ownership Fund have moved forward
quickly and decisively," said Jon Elsasser, vice president - bearings -
Europe, Africa and West Asia. "In fact, we have been able to move from an
initial plant visit to today's signing of the definitive agreement in less
than five months, which we consider to be exemplary considering the complexity
of privatization."
Rulmenti Grei was built in 1979 and employs some 1,000 people. It
manufactures over 1,200 types and sizes of bearings, including tapered,
cylindrical, spherical and ball bearings.
The Timken Company (NYSE: TKR; http://www.timken.com) is a leading international
manufacturer of highly engineered bearings and alloy steels. The company
employs some 19,000 people worldwide and reported 1996 sales of more than
$2.4 billion.
SOURCE The Timken Company