The Timken Co. is acquiring Cone Drive, a precision drive maker with sales expected to be slightly above $100 million for 2018. "We are executing our strategy to profitably grow Timken's power transmission offering across diverse markets around the world," Timken CEO Richard G. Kyle said in a statement. "The acquisition of Cone Drive will deepen Timken's position in attractive, high-growth end markets such as solar and increase our power transmission presence in China. Cone Drive is highly complementary to our business, and we plan to generate significant sales and cost synergies with this transaction." Cone Drive, based in Traverse City, Michigan, produces customizable precision drives used in diverse markets including solar, automation, aerial platforms, and food and beverage. It has manufacturing operations in the U.S. and China with a global customer base. It employs about 500 people. In recent years, Timken has diversified its portfolio by expanding into power transmission products and services adjacent to its core bearing lines. This includes gear drives, chain, belts, couplings, automated lubrication systems, industrial clutches and brakes, and a variety of related services. Timken expects the acquisition to be accretive to earnings per share excluding one-time costs in the first year of ownership. The transaction is expected to close near the end of August 2018 and will be funded with debt.
