Werdohl, Germany, July 2016. On 8 July 2016, The Timken Company, manufacturer of tapered roller bearings, announced its acquisition of Lovejoy, Inc. and its subsidiary, R+L Hydraulics GmbH. Lovejoy, a manufacturer of industrial couplings, universal joints and hydraulics, was purchased for approximately 66 million USD.
From left to right: R+L Hydraulics’ managing directors Dr. Peter Jaschke and Mathew W. Happach, and former managing director Lothar Gädtke, who will retire on 31 December 2016.
“The acquisition of Lovejoy is a great strategic fit, and we are pleased to add their strong brand to our growing portfolio of industrial brands,” said Richard G. Kyle, Timken’s president and chief executive officer. “Lovejoy and R+L Hydraulics feature premium products used in challenging applications across diverse markets. While our two companies operate in many of the same markets and channels in North America, the acquisition provides exciting growth opportunities.”
Headquartered in Downers Grove, Illinois, USA, with additional locations in the USA, Canada and Germany, Lovejoy is widely recognized for its flexible coupling design and as the creator of the jaw-style coupling. Lovejoy also manufactures a line of universal joints, vibration dampening products and hydraulics. For the 12 months ending 31 March 2016, Lovejoy sales were approximately 56 million USD.
Lovejoy’s hydraulics business, R+L Hydraulics, is based in Werdohl, Germany, and manufactures and distributes products for the fluid power and power transmission industries. R + L Hydraulics sells a wide range of hydraulic components, heat exchangers and couplings. The products are mainly used in the fields of stationary and mobile hydraulics, mechanical engineering, wind power, construction machinery, and in the steel and offshore industries.
“Following the acquisition of our parent company Lovejoy by Timken, we are convinced that we will strengthen our activities in the field of power transmission products and will penetrate further market areas,” says Dr. Peter Jaschke, managing director of R + L Hydraulics. The former managing director of R + L Hydraulics, Lothar Gaedtke, will retire at the end of 2016. Mathew W. Happach has already taken over his position as additional managing director of R+L Hydraulics.
This acquisition adds to Timken’s growing portfolio of mechanical power transmission products. In recent years, Timken has been diversifying its offering, completing a number of acquisitions featuring products adjacent to its core bearing lines. This includes belts, chain, gear drive systems, lubrication systems and a variety of related services, all marketed under brands including Timken, Philadelphia Gear, Carlisle, Drives and Interlube. Timken expects the acquisition to be accretive to earnings in the first year of ownership, excluding one-time transaction costs.
About The Timken Company:
The Timken Company (NYSE: TKR; www.timken.com) engineers, manufactures and markets bearings, gear drives, belts, chain and related products, and offers a spectrum of powertrain rebuild and repair services. The leading authority on tapered roller bearings, Timken today applies its deep knowledge of metallurgy, tribology and mechanical power transmission across a variety of bearings and related systems to improve reliability and efficiency of machinery and equipment all around the world. The company’s growing product and services portfolio features many strong industrial brands including Timken, Fafnir, Philadelphia Gear, Carlisle, Drives and Interlube. Known for its quality products and collaborative technical sales model, Timken posted $2.9 billion in sales in 2015. With 15,000 employees operating from 28 countries, Timken makes the world more productive and keeps industry in motion.
About R+L Hydraulics:
At its Werdohl site in Germany, R+L Hydraulics GmbH produces a complete program of hydraulic components, heat exchangers and power transmission couplings. R+L Hydraulics, formerly known as Raja-Lovejoy, was established in 2003. Sole shareholder is Lovejoy Inc. which has been acquired by The Timken Company in July 2016.