NN Inc. acquires tapered roller bearing company
NN Inc. has acquired 79.2% of the outstanding shares of RFK Valjcici Konjic, a manufacturer of tapered roller bearings with operations in Konjic, Bosnia & Herzegovina.
Its products, while complementary to NN's existing roller bearing products, will broaden NN's product offering and allow penetration into adjacent markets. NN expects to acquire the remaining shares of RFK in the near future. Financial terms of the deal were not disclosed.
RFK, a listed company on the Sarajevo Stock Exchange was founded in 1984 and is expected to have sales of approximately $12.0 million in 2014. RFK currently exports all of its products, predominately to customers serving the European truck, industrial vehicle and railway markets. NN will continue operations at the existing facilities in Bosnia and will roll up the operations under its NN Metal Bearing Components Group.
Richard Holder, President and Chief Executive Officer of NN Inc. commented, "We are pleased with the addition of RFK to the NN family. This acquisition along with the announced acquisition of V-S Industries in February of this year, are key first steps in the execution of our strategic growth plan. The acquisition of RFK increases our global manufacturing footprint in Eastern Europe and will strengthen our current product offering to our existing customer base while allowing us to further penetrate the truck, industrial vehicle and railway markets. We remain actively engaged in discussions with other acquisition targets and expect to announce additional transactions in the near future."
Nermin Niksic, Prime Minister of the Federation of Bosnia and Herzegovina stated, "I am strongly convinced that this acquisition would ensure a safe future for the employees and launch positive signals attracting further investments into Bosnia and Herzegovina."
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