Timken Acquires Diamond Chain Co. From Amsted Industries - Quick Facts

(RTTNews) - Timken Co. (TKR) announced Monday that it acquired Diamond Chain Co. from Amsted Industries to expand its growing power transmission portfolio and its leadership in engineered industrial chain.

The acquisition expands Timken's leadership in roller chain, builds on its strong position in distribution and adds depth to its manufacturing capabilities in Asia. It expects to drive significant synergies with the combination of Diamond Chain and Drives.

With the acquisition of Diamond Chain, Timken's power transmission portfolio now accounts for roughly one-third of its revenues. Timken expects Diamond Chain results to be reported mostly through Timken's Process Industries business segment.

The acquisition was funded with cash on hand and through borrowings under existing credit facilities. Timken expects the acquisition to be accretive to adjusted earnings in 2019.

Diamond Chain is a leading supplier of high-performance roller chains for industrial markets. It serves a diverse range of sectors, including industrial distribution, material handling, food and beverage, agriculture, construction and other process industries. For the 12 months ended March 31, 2019, Diamond Chain posted sales of over $60 million.

Indianapolis, Indiana-based Diamond Chain has manufacturing operations in the United States and China.