The Timken Co. acceded to sell its Needle Roller Bearings business to JTEKT Corp. in a cash deal Timken projects at $330 million. The president and CEO of Timken James W. Griffith named the bargaining which was forwarded a strategical step of company to refocus its holdings on industrial sectors with strong aftermarkets.
“It positions us to concentrate our resources on areas where we can realize mutual value with our customers,” according to Griffith.
JTEKT president Motohiko Yokoyama said that the company is conveying its commitment to the automotive industry, it will advance its strategy to become the leading automotive bearings manufacturer of the whole world through this aggrandizement.
The deal would be completed before the end of year,pending regulatory approvals and certain closing status. Timken'statement pointed that the sale income will increase its liquidity and support its general purposes.
Needle Roller Bearings supplies a range of radial and thrust needle roller bearings, as well as bearing assemblies and loose needles to automotive OEM customers. In 2003 takeover of The Torrington Co., Timken achieved the business. It has 12 manufacturing plants and three engineering centers worldwide, and had $621 million in revenues in 2008.
JTEKT is a Japanese manufacturer of steering systems, driveline components, bearings and machine tools, and its OEM customers produce cars, jet engines, windmill power generators, and bullet trains. JTEKT is the product of a 2006 merger of Toyoda Machine Works Ltd. and Koyo Seiko Co. Ltd.