The Timken Co., a manufacturer of engineered bearings and power transmission products, is set to acquire BEKA Lubrication, a supplier of automatic lubrication systems, for approximately $165 million.

BEKA serves a diverse range of industrial sectors including wind, food and beverage, rail, on- and off-highway and other process industries. BEKA sales are expected to be around $135 million for the full year 2019.

"The acquisition of BEKA expands our global leadership in the highly attractive automatic lubrication systems market sector, increases our geographic scale and market coverage in Europe and Asia and will create new opportunities to serve wind and other industrial end markets more fully," said Timken President and CEO Richard G. Kyle. "BEKA is a premier brand and technical leader, and like our Groeneveld business, offers automatic and central lubrication systems that reduce operating costs and extend equipment life. We expect to realize significant synergies, margin expansion and revenue growth opportunities through the combined Groeneveld-BEKA business."

BEKA is headquartered in Pegnitz, Germany and employs approximately 900 people, with manufacturing, research and development based in Germany, and assembly facilities and sales offices around the world.

The transaction, expected to close during the fourth quarter of this year, will be funded with cash and existing debt facilities.