Acquisition

RNS Number : 5963M

Smiths Group PLC

18 August 2011

 

 

News Release

London, 18 August 2011

For immediate release

JOHN CRANE BUYS US BEARINGS COMPANY

John Crane, a division of global technology business Smiths Group, today announces the purchase of the business and assets of Turbo Components and Engineering Inc. (TCE) which services, repairs and builds replacement bearings and seals used in critical rotating equipment. The cash-funded acquisition from TCE is subject to regulatory approval.

The main customers of the Houston-based company include refineries, chemical plants and power producers. TCE has a gross asset value of approximately $3.2 million and sales of around $10 million are forecast for the current calendar year. The purchase price was not disclosed.

The acquisition underlines the continued expansion of John Crane's range of solutions for high-performance rotating equipment, which includes other product areas such as mechanical seals and support systems, specialised filtration equipment and power transmission couplings.

Paul Cox, President of John Crane, said: "TCE adds capability for servicing bearings to our growing aftermarket platform, creating an end-to-end product and service solution for our customers. This provision of more technically differentiated solutions will improve both the scale and overall profitability of the bearings product line in the immediate future."

TCE also fits John Crane's stated strategy of broadening its addressable market, utilising the core competencies within its global and local sales and service infrastructure. It will become part of John Crane Bearings Technology, formed following the acquisitions of Sartorius Bearing Technology in October 2007 and Orion Corporation in May 2009.

John Crane www.johncrane.com is a world-leading provider of engineered products and services for the major process industries, including oil and gas, power, chemical, pharmaceutical, and other general industries. It is part of Smiths Group, www.smiths.com, a global technology company listed on the London Stock Exchange (SMIN) and operating a sponsored level one ADR programme (SMGZY). A world leader in the practical application of technologies, Smiths Group delivers products and services for the threat & contraband detection, medical devices, energy & communications markets. Our products and services make the world safer, healthier and more productive. Smiths Group employs more than 23,000 people in over 50 countries.

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