STOCKHOLM - Sweden's SKF, the world's biggest maker of industrial bearings, announced on Thursday it had acquired U.S. bearings manufacturer Kaydon for $1.25 billion (948 million euros).
SKF (IW 1000/449), which will pay a 22% premium on Kaydon's closing stock price Wednesday on the New York Stock Exchange, highlighted in a statement the "complementary nature of their products and technologies."
SKF, which also makes sealants, is an important supplier to many parts of the industrial processing chain.
Kaydon reported sales of $475 million in 2012, or about a 20th of SKF's sales.
"This acquisition, combined with our other activities, investments and acquisitions in the last few years, shows our strong commitment to the North American market," SKF said.
The transaction, which has been approved by the two companies' boards, will be an all-cash transaction and includes $95 million of debt.
Copyright Agence France-Presse, 2013