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Timken Acquires Torrington

The Timken Company, a worldwide leader in bearings and alloy steel, announced Thursday that it acquired the Torrington subsidiary of the Ingersoll-Rand Company Limited. Officials at Timken’s Lincolnton plant said the local impact of the acquisition is not yet known. Torrington, which has a company in Rutherfordton, N.C., is a leading worldwide producer of needle roller, heavy-duty roller and ball bearings, as well as motion control components and assemblies. With this acquisition, Timken becomes the world’s third largest bearings company with approximately $3.6 billion in annual revenues. As part of the agreement, Ingersoll-Rand will receive $700 million in cash and $140 million in Timken shares. The transaction is expected to close during the first quarter of 2003. The acquisition of Torrington, which had 2001 sales totaling $1.1 billion, broadens Timken’s existing portfolio of automotive and industrial bearings-based products and service solut8ions and expands the global size and scope of Timken’s business, officials said in a press release. Timken and Torrington each have more than 100 years of operating experience in anti-friction products. Timken officials expect the acquisition to increase earning per share by at least 10 percent in 2003. Timken expects to achieve annual cost savings of approximately $80 million to be fully phased in by the end of 2005, with about $20 million realized in the first year. Timken chairman W.R. Timken Jr. said the company is excited about combining Timken and Torrington. “We are gaining world leading bearings-based businesses at a fair valuation, and our shareholders will own an expanded global company that is able to leverage many of our existing assets and core competencies and which has a solid balance sheet, greater liquidity and additional value-creation opportunities,” Timken said. By acquiring Torrington, Timken strengthens its presence in Europe, Asia and Latin America.