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SKF sells linear motion business to Triton for $310m
SKF is selling its linear and actuation technology business, SKF Motion Technologies, to the venture capital company Triton for a total of SEK 2.75bn ($310m) on a cash- and debt-free basis. The deal is expected to close by the end of 2018, provided that it receives regulatory approvals and is accepted by employee bodies.
SKF Motion Technologies supplies electrical linear actuator components and systems as well as linear motion products, for applications such as medical and industrial actuators and rollerscrews. In 2017, the business employed around 1,200 people and had sales worth SEK 2bn ($230m). Headquartered in Gothenburg, Sweden, it operates production sites in Sweden, France (2), Switzerland, Germany (2), the US, Taiwan and China.
SKF’s French linear and actuation technology business is being dealt with separately, but SKF is also hoping to sell it to Triton.
The divestments are part of SKF’s efforts to focus on its core business based on rotating shafts. To date, its divestments have raised around SEK 6.7bn ($760m).
“Having successfully developed [SKF Motion Technologies] as a stand-alone entity, it will now have an ownership structure that is able to invest in its continued development,” says SKF’s senior vice-president and chief financial officer, Christian Johansson. “The transaction also represents value for us and our shareholders by strengthening our balance sheet and focusing our product portfolio.”
Triton intends to form a standalone company for the acquired business, which will operate under a new brand.
“We look forward to actively supporting the management and employees as a stable owner by investing in and supporting the growth and development of the company,” says Peder Prahl, director of the general partner for the Triton funds. “Our strong industry expertise, gained through other investments and strengthened by senior industry experts, will contribute in taking the company to the next level.”
SKF Motion Technologies’ managing director, Daniel Westberg, predicts that “by becoming a standalone entity supported by an experienced and active owner with broad sector expertise, we will improve our ability to advance our positions and offerings in niche markets segments”.
• SKF’s announcement that it is selling Motion Technologies comes a few days after another significant linear motion deal – Timken’s planned acquisition of the Italian linear motion manufacturer, Rollon.
