WEST NYACK, NY -- February 13, 2012 -- General Bearing Corporation (OTC:GNRL.PK) today announced the signing of an agreement whereby SKF, a Swedish company, will acquire GBC and its subsidiaries, including the interests in its four manufacturing sites in China. The transaction is subject to relevant regulatory and shareholder approvals.
The purchase price of approximately $28 per share, all cash, represents an aggregate enterprise value of $125,000,000, net of contractual adjustments and the satisfaction of certain obligations and liabilities of the company, and is subject to adjustments that could arise from escrow arrangements related to both working capital and indemnifications.
“This transaction will deliver significant value to our shareholders,” said David Gussack, Chairman and CEO of General Bearing Corporation. “We are pleased to become part of the SKF Group.”
“I am delighted with the acquisition of GBC, which goes to market using the “General” and “Hyatt” brands. Under David Gussack’s leadership GBC has very successfully developed their business serving the automotive and heavy duty markets in the USA. Strategic utilization of their factories in China has been a key component of that success.” said Tom Johnstone, SKF President and CEO.
Under the terms of the agreement, the transaction is structured as a merger requiring approval of a majority of General Bearing Corporation’s shareholders at a special meeting, which is expected to take place March 19, 2012 in West Nyack, NY.
General Bearing Corporation will continue to operate as an independent subsidiary within the SKF Group, continuing to provide customers with products under the existing “General” and “Hyatt” brands.
General Bearing manufactures ball bearings, tapered roller bearings, spherical roller bearings, and cylindrical roller bearings, and bearing components. Under “The General” and the “Hyatt” trademarks, the Company supplies original equipment manufacturers in the automobile, truck/trailer, railcar, office equipment, machinery and appliance industries, as well as the industrial aftermarket.
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