The Timken Company has acquired The Diamond Chain Company from Amsted Industries. Diamond Chain is a supplier of roller chains for industrial markets. The company serves a range of sectors, including industrial distribution, material handling, food and beverage, agriculture, construction and other process industries. For the 12 months ended 31 March 2019, Diamond Chain posted sales of over US$60 million.
“The acquisition of The Diamond Chain Company adds another strong industrial brand with a reputation for quality, reliability and performance to Timken’s growing power transmission portfolio,” said Richard G. Kyle, Timken president and chief executive officer. “Diamond Chain is a premier brand in the North American distribution channel and is an excellent strategic fit with our Drives chain business. The acquisition expands our leadership in roller chain, builds on our strong position in distribution and adds depth to our manufacturing capabilities in Asia. We expect to drive significant synergies with the combination of Diamond Chain and Drives.”
Founded in 1890 and headquartered in Indianapolis, Indiana, Diamond Chain has manufacturing operations in the United States and China. The company employs approximately 370 people.
With the acquisition of Diamond Chain, Timken’s power transmission portfolio now accounts for roughly one-third of company revenues. Timken expects Diamond Chain results to be reported mostly through Timken’s process industries business segment.
The acquisition was funded with cash on hand and through borrowings under existing credit facilities. Timken expects the acquisition to be accretive to adjusted earnings in 2019.
Read the article online at: https://www.globalminingreview.com/finance-business/05042019/timken-acquires-the-diamond-chain-company/