The Timken Company (NYSE: TKR) today announced that it has entered into an agreement to acquire the assets of Boring Specialties Inc. (BSI), a leading provider of a wide range of precision deep-hole oil and gas drilling and extraction products and services. Based in Houston, Texas, BSI had 2006 sales of approximately $48 million and employs 190 people.
The acquisition will extend Timken’s presence in the growing energy market by adding BSI’s value-added products to its wide range of alloy steel products for oil and gas customers. Terms of the acquisition, which Timken expects to be accretive during the first year of ownership, were not disclosed.
Founded in 1972 by Charlie Elder, BSI primarily serves the oil and gas industry, with value-added products used in the manufacture of down-hole drilling and completion components. Timken steel is used in a number of BSI’s products. Elder will continue as president of the new entity following successful completion of the transaction.
“Customers operating in an oilfield environment face some of the most demanding conditions on earth, and both Timken and BSI provide the products they need to succeed,” said Salvatore J. Miraglia, president – Steel Group. “As the search for new energy reserves goes farther afield and deeper below the surface, we believe that together we can capitalize on growth opportunities that alone we could not have tapped.”
The transaction is subject to customary closing conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Timken expects the transaction to close in the first quarter of 2008.
Timken solutions span a variety of energy and power-generation applications from windmill gearboxes to energy exploration. The demanding conditions encountered in oil and gas drilling lead companies to turn to Timken for high-quality steel products that can withstand the extremes encountered below the earth’s surface.
About The Timken Company
The Timken Company (NYSE: TKR, http://www.timken.com) keeps the world turning, with innovative friction management and power transmission products and services, enabling our customers to perform faster and more efficiently. With sales of $5.0 billion in 2006, operations in 26 countries and approximately 25,000 employees, Timken is Where You Turn™ for better performance.
Certain statements in this news release (including statements regarding the company's expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, the statements related to expectations regarding the accretion and timing of the acquisition are forward-looking. The company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: the inability to complete the acquisition due to either the failure to satisfy any condition to the closing of the transaction, including receipt of regulatory approval, or the occurrence of any event, change or other circumstance that could give rise to the termination of the purchase agreement; the risks associated with the integration of acquired business; and adverse changes in the markets served by Boring Specialties. These and additional factors are described in greater detail in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2006, page 40, and in the company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2007.The company undertakes no obligation to update or revise any forward-looking statement.
Jeff Dafler, 330-471-3514
Manager - Global Media & Government Relations
Steve Tschiegg, 330-471-7446
Manager - Investor Relations
For Additional Information: