SKF to acquire Kaydon Corp.
Kaydon Corporation and SKF have signed a definitive agreement for SKF to acquire Kaydon for approximately $1.25 billion.
At $35.50 per share, the purchase price represents a 22% premium to Kaydon’s closing stock price on Sept. 4 and a 21% premium to Kaydon’s 30-day average stock price.
"Our board believes that the proposed transaction represents a compelling value for our
shareholders. We believe that this transaction represents an excellent strategic fit for
Kaydon that will allow our market leading businesses to accelerate their growth strategies by joining forces with SKF, a global industry leader," said James O’Leary, chairman and chief executive officer of Kaydon.
Kaydon’s product offering is complementary with SKF's product portfolio and the company serves a number of segments that are less represented in SKF's current customer base, according to a statement from SKF.
Tom Johnstone, SKF president and CEO, said that the complementary nature of Kaydon's products and technologies, geographical and customer presence and manufacturing footprint will "enable us to even better serve our customers and distributors in the industrial market worldwide.”
Kaydon Corporation designs and manufactures bearings and velocity control products such as industrial shock absorbers, gas springs and vibration isolation products.
The SKF Group is a global supplier of products, solutions and services within rolling bearings, seals, mechatronics, services and lubrication systems.
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