The Timken Company is buying Philadelphia Gear Corp. for $200 million, according to an agreement the two companies have reached. The deal will be completed during the third quarter of this year. It combines Timken’s bearings and power-transmission products with Philadelphia Gear’s high-performance gear drives and components, giving Timken proprietary PT knowledge of premium gear drives, replacement products and services for important energy and infrastructure markets.
Philadelphia Gear has particular strength in aftermarket supply to the industrial and military marine sectors. Recently, it landed an $80-million contract to supply main reduction gears to the U. S. Navy.
Timken said adding Philadelphia Gear to its Process Industries segment significantly expands the range of its industrial services, and advances its strategy to offer comprehensive products and services to end-users.
"Philadelphia Gear is an excellent fit with Timken," stated Timken Process Industries segment president Chris Coughlin. "Like Timken, it is a leader in industrial services providing highly engineered solutions and replacement components for mechanical power transmission equipment. It will strengthen our presence precisely in the areas we've targeted, with excellent prospects for profitable growth via extension to our customer base around the world."
