Engineered bearings and industrial motion company The Timken Co., has agreed to acquire CGI Inc., a Nevada-based manufacturer of precision drive systems serving a broad range of automation markets with a concentration in medical robotics. The deal is subject to customary closing conditions, including regulatory approval, and is expected to close in the third quarter.
“Timken has one of the broadest and most differentiated precision drive product portfolios in the global automation industry,” says Christopher Coughlin, executive vice president and president of Industrial Motion. “Driven by the strength in operational excellence, growing global footprint and expanding engineering expertise, we’re well positioned for growth in attractive markets such as medical, solar, factory automation, aerospace, general industrial and more.
“CGI’s precision motion-control offerings closely complement the Cone Drive harmonic and Spinea cycloidal products. With an attractive product portfolio, strong presence in high-growth medical applications, state-of-the-art manufacturing and consistently strong operating margins, the CGI acquisition is a good strategic fit for Timken that will help us continue to build on the 125-year legacy of innovation.”
Timken entered the precision drives space in 2018 by acquiring Cone Drive and expanded its capabilities in 2022 by adding Spinea. These acquisitions were a direct result of Timken’s strategy to diversify and expand its capabilities in industrial motion. Cone Drive and Spinea solutions enable a wide range of applications and are helping to drive Timken’s growth in automation, which ranked as the company’s second-largest individual end-market sector in 2023. The addition of CGI will more bolster Timken’s position as a global leader in automation and robotic solutions.
CGI is a family-owned business founded in 1967 with headquarters and production facilities in Carson City, Nevada. The company employs about 130 people and is expected to generate around $45M in sales in 2024.
Timken will fund the transaction with a combination of cash on hand and existing committed credit facilities. For more information, visit timken.com/timken-world.
Leave a Reply
You must be logged in to post a comment.