SKF Acquires Leading Lubrication Systems Business in Finland

SKF has signed an agreement with John Crane Safematic Oy, part of the Speciality Engineering Division of Smiths Group plc, to acquire John Crane's lubrication systems business. The business is headquartered and has its manufacturing operations in Muurame, Finland and in addition has sales offices in Sweden, Germany, USA and Brazil. The business had sales in 2005 of Euros 25 million and has 127 employees. The products, segments served and geographical presence of this business is very complementary to SKF's existing lubrications systems business and will enable SKF to offer our customers a wider range of solutions and improved value propositions. The business will be part of the SKF lubrication systems business which is within the Group's Industrial Division. SKF pays Euros 22.9 million for the business. The acquisition is subject to relevant regulatory approvals and is expected to be finalized during the third quarter.