NTN Moves to Acquire SNR

NTN Corp. (Japan) is preparing to acquire French bearing manufacturer SNR Roulements from its parent Renault SA (France), according to numerous sources. Renault is expected to make the announcement official during a February 9 investors conference, as the troubled automaker prepares a turnaround and reorganization plan. No firm timeframe has been established for divesting SNR. However, because NTN reportedly walked away from a similar agreement just this past September 2005, word of its possible revival caught many by surprise. SNR (Societe Nouvelle de Roulements, or the New Bearing Company) is a global bearing manufacturer and supplier to the automotive, industrial and aerospace industries. The company has five plants in France: Annecy, the headquarters; Argonay (high precision bearings); Meythet (roller bearings); Seynod (rolling elements, ball bearings, clutch release bearings, thrust bearings); Ales (ball bearings, automotive wheel hub bearings. And five plants in other countries: Bielefeld, Germany (linear guides); Curitiba, Brazil (ball bearings, tapered roller bearings); Turin, Italy (spherical roller bearings); Sibiu, Romania (standard ball and roller bearings); Atlanta, Georgia, USA (aerospace bearing maintenance). SNR operates two main warehouse and logistics centers. The first and largest is in Cran Gevrier, on the outskirts of Annecy; the other is in Saint Vulbas, outside Lyon. In October 2005, SNR divested its bearing ball manufacturing facilities in Annecy, France to NN Inc. (USA). In September 2005, Renault recalled SNR CEO Gerard Ravouna after ten years at the helm of SNR, reportedly after the NTN deal fell through. Didier Simon has replaced Mr. Ravouna. Founded in 1946, SNR is follow-on company of SRO, a French bearing manufacturer founded in Annecy 1916. SRO was destroyed by WWII RAF bombing raids in 1944, and in 1946 a newly nationalized Renault took over and revived the company as Societe Nouvelle de Roulements. The company then consolidated five bearing factories. SNR had 2004 sales of approximately