Business Development Asia LLC (“BDA”) is pleased to report that its client, General Bearing Corporation (GBC) (OTC:GNRL.PK), will be acquired by SKF. GBC announced the signing of an agreement whereby SKF, a Swedish company, will acquire GBC and its subsidiaries, including the interests in its four manufacturing sites in China. The transaction is subject to relevant regulatory and shareholder approvals.
Headquartered in West Nyack, New York, GBC manufactures and sells precision bearings to truck & trailer, automotive, and industrial sector original equipment manufacturers (“OEMs”), primarily in the United States. The company’s main products include ball bearings, tapered roller bearings, and spherical roller bearings. GBC manufactures through its four joint venture operations in China.
The purchase price of approximately US$28 per share, all cash, represents an aggregate enterprise value of US$125m, net of contractual adjustments and the satisfaction of certain obligations and liabilities of the company, and is subject to adjustments that could arise from escrow arrangements related to both working capital and indemnifications.
“This transaction will deliver significant value to our shareholders,” said David Gussack, Chairman and CEO of General Bearing Corporation. “We are pleased to become part of the SKF Group.”
“I am delighted with the acquisition of GBC, which goes to market using the “General” and “Hyatt” brands. Under David Gussack’s leadership GBC has very successfully developed their business serving the automotive and heavy duty markets in the USA. Strategic utilization of their factories in China has been a key component of that success.” said Tom Johnstone, SKF President and CEO.
Under the terms of the agreement, the transaction is structured as a merger requiring approval of a majority of General Bearing Corporation’s shareholders at a special meeting, which is expected to take place March 19, 2012 in West Nyack, NY.
General Bearing Corporation will continue to operate as an independent subsidiary within the SKF Group, continuing to provide customers with products under the existing “General” and “Hyatt” brands.
BDA acted as joint advisor to GBC together with Boenning & Scattergood. Loeb & Loeb acted as lawyers to GBC. The transaction is expected to be completed by July.
Euan Rellie, Senior Managing Director, New York
Jeffrey Wang, Managing Director, Shanghai
Kent Ng, Assistant Director, Shanghai
Max Kubicki, Associate, Shanghai
Doreen Dong, Analyst, New York
About General Bearing
Headquartered in West Nyack, NY, General Bearing is a leading manufacturer of ball bearings, tapered roller bearings, spherical roller bearings, and cylindrical roller bearings, and bearing components. Under “The General” and the “Hyatt” trademarks, the company supplies original equipment manufacturers in the automobile, truck/trailer, railcar, office equipment, machinery and appliance industries, as well as the industrial aftermarket. During 2011, General Bearing’s expected sales were around $155 million, and the company employs 1,750 people in the U.S. and China. General Bearing will continue to operate as an independent subsidiary within the SKF Group, continuing to provide customers with products under the existing “General” and “Hyatt” brands.
About SKF AB
SKF is a leading global supplier of rolling bearings, seals, mechatronics, and lubrication systems. The Company employs over 40,000 staff in 110 manufacturing sites across 70 countries, and has a wider presence in over 140 countries approximately 15,000 distributors and dealers. SKF operates through three divisions: Industrial Division and Service Division, servicing OEMs and aftermarket customers, respectively, and the Automotive Division, servicing automotive OEMs and aftermarket customers. The Company operates in 40 customer segments, including cars and light trucks, wind energy, railway, machine tools, medical, food and beverage, and paper industries. SKF is headquartered in Gothenburg, Sweden. The company had sales of US$9.6bn in 2011.
About Business Development Asia
Business Development Asia LLC (“BDA”) assists multinational corporate and financial sector clients to identify and execute acquisitions, divestments, JVs, restructuring and capital raising, in Asia and internationally. The company is headquartered in New York with offices in London, Bahrain, Mumbai, Hong Kong, Beijing, Shanghai, Seoul, and Tokyo. BDA employs 65 full-time professional staff across its nine offices, supplemented by a team of senior advisors around the world. BDA’s clients include Air Liquide, Areva, AXA Private Equity, Celestica, Clariant, DIC, DuPont, Ecolab, GE, Hercules, Kennametal, Koch, Materion, Molex, Nalco, Nova Capital Partners, Pfizer, Rexel, Reuters, Ryder, Sumitomo Chemical, SigmaKalon, Sun Chemical, TATA, Tredegar, Weir, WestLB, and the British Government. BDA has a strategic alliance with William Blair & Co. Further information on BDA is available at www.bdallc.com.