SKF Completes Tender Offer For Kaydon; Expects To Close Acquisition Later Today

(RTTNews) - Swedish ball-bearing maker SKF Group (SKFRY.PK, SKFB.L) announced the successful completion of its all cash tender offer to acquire all outstanding shares of US-based industrial manufacturer Kaydon Corp. (KDN) for $35.50 per share in cash. SKF expects to complete the acquisition of Kaydon later today through a merger.

"I am delighted that Kaydon and its employees will be joining the SKF Group. Kaydon brings to SKF a highly complementary product portfolio and an improved customer and geographic presence. They have a strong leadership team, as well as highly skilled and qualified employees," says Tom Johnstone, SKF President and CEO.

Kaydon has a global footprint with 62% of its sales generated in North America, 24% in Europe, 12% in Asia Pacific and 2% in the rest of the world. In 2012, the company had sales of $475 million, with an adjusted operating profit of around 16% and has over 2,100 employees.

SKF said it expects to achieve annual cost synergies of $30 million and sales synergies of $50 million over the next several years. This will be achieved by leveraging synergies in cost and purchasing, in distribution and sales channels and by utilizing the combined manufacturing foot print.

SKF stated that the tender offer expired on 15 October, 2013, and a total of 25.46 million shares were validly tendered into and not validly withdrawn from the tender offer, representing approximately 77.1% of Kaydon's outstanding shares on a fully diluted basis. The condition of the tender offer that a majority of Kaydon's outstanding shares on a fully-diluted basis be validly tendered and not withdrawn has been satisfied.

As a result of the merger planned later today, SKF noted that Kaydon will be a wholly owned subsidiary of SKF from 16 October, 2013 and will be reported outside the existing business areas.

According to SKF, All remaining eligible Kaydon shares will be converted into the right to receive $35.50 per share in cash, without interest and less any applicable withholding taxes, the same price that was paid in the tender offer.

Following completion of the merger, the common stock of Kaydon will cease to be traded on the New York Stock Exchange and will no longer be listed.

In early-September 2013, SKF Group had said it agreed to acquire Kaydon in an all-cash transaction valued at around $1.25 billion, including $95 million of net debt.