AB SKF to Acquire US-based Kaydon Corporation - Deal Analysis from GlobalData
AB SKF (SKF), a Swedish bearing company, has announced the acquisition of Kaydon Corporation (Kaydon), a US-based designer and manufacturer of performance-critical and engineered products. The total value of the acquisition is approximately $1.25 billion, which includes $95m of net debt. The share price of the acquisition amounts to $35.50, to be paid in cash. The transaction will be financed by SKF’s existing cash and credit lines and will be accretive to its earnings per share in coming years. SKF will buy all of Kaydon’s outstanding shares by issuing an all-cash tender offer. With this attainment, SKF will become the leading manufacturer and supplier of bearings and velocity control products in North America.
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