Timken to Buy Industrial Bearing Repair Business
19 May 1998
The Timken Company to Acquire Industrial Bearing Repair Business in South Bend, Indiana CANTON, Ohio, May 18 -- As part of its initiative to continue
building on its manufacturing and service expertise, The Timken Company
has signed a definitive agreement to acquire the assets of an
industrial bearing repair business in South Bend, Indiana. Founded in 1984,
Bearing Repair Specialists reconditions or modifies a wide variety of bearing
types for industrial customers in the United States and Canada.
"Expanding the breadth and depth of bearing services we offer to our
customers is fundamental to our company's continued successful growth," said
Salvatore J. Miraglia, group vice president - North America industrial and
super-precision bearings for The Timken Company. "Strategically, we intend to
continue expanding and diversifying our related services, as evidenced by
MPB's Precision Bearing Center and our previous acquisitions of Handpiece
Headquarters and Rail Bearing Service." The Precision Bearing Center
remanufactures engine aircraft bearings and Handpiece Headquarters refurbishes
dental drills and related super-precision applications; both are part of MPB,
a Timken Company subsidiary. Rail Bearing Service, another Timken subsidiary,
specializes in the recondition and remanufacture of railroad bearings.
"Bearing repair is an important element of our profitable growth," Mr.
Miraglia said. "This newest acquisition will allow us to continue expanding
the number of value-adding services we offer our industrial customers and spur
additional business in the North American market.
"Clearly, the Bearing Repair Specialists organization is a service
business that we not only want to perpetuate but that will be set on an
aggressive growth path."
Bearing Repair Specialists (BRS) was established 13 years ago by Charles
Graham, Bernard Janicki and Donald Yandl. The company employs some 25 people
in a 40,000-square-foot facility.
"Maintenance practices have improved during the past decade such that many
process industries now have the opportunity to repair, rather than replace,
their bearings, resulting in substantial savings through refurbishment
services," said Thomas L. Hillmer, general manager - industrial bearing
remanufacturing. "We have been particularly impressed with Bearing Repair
Specialists' capabilities and expertise. Their capacity, coupled with our
existing repair and remanufacturing capabilities in Canton, Ohio, will provide
Timken with additional market opportunity, particularly in the pulp and paper
industry where BRS has focused much of their effort. BRS' ability to
refurbish ball, cylindrical and spherical bearings is an added benefit,
offering additional value to customers purchasing bearings products from some
of our newly acquired operations in Europe."
Timken has been reconditioning bearings for more than 50 years, but has
placed additional emphasis on this value-adding service during the past decade
to help process industries reduce costs and plant downtime. "Bearing
refurbishment can accomplish both," Mr. Hillmer said, "by restoring existing
parts to their original condition more rapidly and at lower cost than
purchasing new bearings. The acquisition gives us even greater potential
savings for our customers and returns for our shareholders."
Mr. Hillmer also announced that Michael P. Denison has been named manager-
-industrial bearing services for The Timken Company, and will be relocating to
South Bend. "Mike brings his wealth of experience in our bearing plant
maintenance support areas to South Bend," said Mr. Hillmer. "This makes him
uniquely qualified to work with our customers' maintenance staffs, helping
them improve their business through the use of our remanufacturing services.
His background will be particularly valuable as we integrate and grow this new
business."
The Timken Company is a leading international manufacturer of highly
engineered bearings and alloy steels. The company employs about 21,000 people
worldwide and reported 1997 sales of more than U.S. $2.6 billion.