The Timken Company (NYSE: NYSE:TKR), known for its engineered bearings and industrial motion products, has announced an agreement to acquire CGI Inc., a Nevada-based manufacturer specializing in precision drive systems.
The acquisition, expected to close in the third quarter, is pending regulatory approval and customary closing conditions.
Timken's expansion into the precision drive space began in 2018 with the acquisition of Cone Drive and continued in 2022 with the addition of Spinea. The purchase of CGI Inc. is aligned with the company's strategy to diversify and enhance its industrial motion capabilities. CGI's focus on medical robotics and other automation markets complements Timken's existing product offerings.
"CGI's precision motion-control offerings closely complement our Cone Drive harmonic and Spinea cycloidal products," said Christopher Coughlin, Timken's executive vice president and president of Industrial Motion. He noted that the acquisition is a strategic fit for Timken.
Founded in 1967, CGI is a family-owned business headquartered in Carson City, Nevada, employing approximately 130 people. The company is projected to generate about $45 million in sales in 2024. Timken plans to fund the transaction using cash on hand and existing credit facilities.
Timken, with $4.8 billion in sales in 2023, operates globally with over 19,000 employees in 45 countries.
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