The Timken Company has agreed to acquire Groeneveld Group, a provider of automatic lubrication solutions used in on- and off-highway applications, for approximately $280 million, the engineered bearings and mechanical power transmission products company announced Tuesday.
The acquisition of Groeneveld, Timken President and CEO Richard G. Kyle says, will further expand the company’s presence in the automatic lubrication systems space, which Timken entered in 2013 with the acquisition of Interlube.
“Groeneveld will bring a strong brand and management team, a global customer base and an industry-leading product portfolio that has an attractive market position in off-highway equipment and heavy trucks,” he says.
Groeneveld Group also has a small telematics business, Groeneveld ICT, which provides solutions for truck fleet operators. Groeneveld Group employs approximately 600 people.
The transaction is expected to close in early July and will be funded with a combination of cash and debt.