Changzhou Giant Bearing Co., Ltd

SKF today announced they have signed an agreement to acquire New York-based General Bearing Corporation (GBC) for around USD 125 million on a cash and debt free basis. The transaction is subject to relevant regulatory and shareholder approvals.

"I am delighted with the acquisition of GBC which market using The General and Hyatt brands. Under David Gussack's leadership GBC has very successfully developed their business serving the automotive and heavy duty markets in USA utilising their factories in China," says Tom Johnstone, SKF President and CEO. "The acquisition of GBC is fully in line with our strategy to develop our product offering with complementary brands enabling us to better serve these important markets."

General Bearing Corporation will continue to operate as an independent subsidiary within the SKF Group. SKF also operates with the PEER brand, which was acquired in 2008.

General Bearing Corporation facts:

• Established in 1955 with headquarters in West Nyack, NY, USA
• 1,750 employees, of which 140 are located in the USA and 1,610 in China.
• Four factories in China: one ball bearing factory, two taper roller bearing factories and one precision roller factory.
• During 2011, the expected sales of GBC were around 155 MUSD, with an operating margin in line with the SKF Group.
• GBC has focused much of its capabilities to serve OEM and End-user customers within the transportation markets: Truck, Trailer, Automotive, and Industrial.

"We are pleased to be joining the SKF Group and look forward to continuing to contribute to profitable growth in the bearing sector," says David Gussack, Chairman and CEO for General Bearing Corporation. "Our focus on cost-effective overseas production and our proven track record of successfully operating in China will enable the SKF Group to further develop other markets previously not fully addressed by the SKF brand."