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Timken to Sell Kilian Bearings Business
CANTON, Ohio -- The Timken Co. is selling its Kilian Manufacturing Corp. and its affiliate, Kilian Canada ULC, to an affiliate of Genstar Capital L.P., San Francisco, and members of Kilian's management team, according to a news release from Timken. Kilian produces machined-race bearings, including ball and roller bearings and assemblies, for broad industrial and automotive applications and in 2003 reported net sales of approximately $40 million.Terms of the sale were not disclosed, but officials said they expect to use the proceeds from the sale to pay down debt and for other corporate purposes.Founded in 1922, Kilian employs 344 at manufacturing facilities in Syracuse, N.Y., and Toronto, Canada. Its products are used in such diverse applications as sliding and overhead doors, furniture, appliances, conveyors and automotive steering. Kilian was acquired by The Torrington Co. in 1975, and Timken acquired Torrington in 2003."Kilian is an excellent business, and we are pleased to have found a strong buyer that will enable it to continue to grow," said James W. Griffith, Timken president and chief executive officer. "While Kilian is not a strategic fit for The Timken Co. since its products and applications are outside our traditional areas, we believe Kilian will benefit from a management team focused solely on its products and its industry."The transaction is expected to close in next month. "Kilian has a wide customer base of nearly 500 original equipment manufacturers, expertise in designing custom solutions for its large customer base, and strong engineering and manufacturing capabilities," said William Duff, president and CEO of Kilian. "We expect to leverage all of these strengths to further enhance Kilian as a successful, profitable enterprise.""With management's experience in building basic industrial businesses, Genstar believes that we can further build upon Kilian's market-leading position in North America to capitalize on new opportunities to deliver growth both organically and through add-on acquisitions and ultimately deliver value for Kilian's customers and shareholders," added Jean-Pierre L. Conte, chairman and managing director of Genstar Capital.The Timken Co. is a manufacturer of highly engineered bearings and alloy steels and a provider of related products and services with operations in 27 countries. The company recorded 2003 sales of $3.8 billion and employed approximately 26,000 at year-end, the news release said.Visit Genstar Capital LLP: www.gencap.comVisit The Timken Co.: www.timken.com"