The Timken Company announced an agreement to acquire the assets of Philadelphia Gear Corp., a provider of high-performance gear drives and components with a focus on value-added aftermarket capabilities in the industrial and military marine sectors, for $200 million. The acquisition brings proprietary power-transmission knowledge of premium gear drives, replacement products and services for markets including energy and infrastructure. Philadelphia Gear was recently awarded an $80 million contract to provide main reduction gears for the U.S. Navy.
The addition of Philadelphia Gear, which employs approximately 220 people, expands the range of industrial-services capabilities for both companies. Timken plans to complete the acquisition through its Timken Gears & Services Inc. subsidiary by the third quarter of 2011.