SKF makes strategic acquisition to strengthen its lubrication management capabilities
GOTHENBURG, Sweden, Aug. 14, 2024 /PRNewswire/ -- SKF has signed an agreement to acquire John Sample Group's (JSG) Lubrication and Flow Management businesses. JSG is a well established provider of lubrication management systems and services. The acquisition further strengthens SKF's offering in an identified growth segment, as well as its business operations in the expansive India and South-East Asia (ISEA) region.
More than half of all premature bearing failures are caused by poor lubrication and contamination. This means that lubrication is a critical aspect in machine reliability with a direct and profound impact on production output and quality, costs, and the environment. SKF, through the Lincoln and SKF brand, has already today a strong position in automatic lubrication systems, and the acquisition provides access to JSG's wide customer base, sales and distribution network, as well as engineering and services capabilities.
JSG had sales of approximately SEK 550 million in their latest fiscal year, is margin accretive and has 86 employees. Following the acquisition, net sales for SKF's Lubrication Management business will be around SEK 7 billion.
"This acquisition is a good strategic fit as it enables us to become a significant lubrication systems player in the important ISEA region. Lubrication is an important part of SKF's portfolio of offering, enabling us to offer our customers tailored stand-alone lubrication solutions as well as improved bearing performance. As an essential part of industrial maintenance, effective lubrication management also contributes to a sustainable business and society," says Thomas Fröst, President, Independent and Emerging Business, at SKF.
"At this stage in my career, transition of the John Sample Group is a natural and positive evolution. It is important for me and my family when making any decision of this kind, to engage with a party whose future vision for JSG is as closely aligned with our purpose, values, and strategies," says John Sample, Executive Chairman, John Sample Group Pty Ltd.
Founded in 1921, JSG is headquartered in Sydney, Australia, and serves a wide range of industries, including mining, construction and off-highway, pulp and paper, food and beverages, and transportation, across the product verticals Lubrication Systems and Instrumentation & Flow. The acquisition is expected to be completed during Q4 2024.
Aktiebolaget SKF
For further information, please contact:
PRESS: Carl Bjernstam, Head of Media Relations
tel: 46 31-337 2517; mobile: 46 722-201 893; e-mail: carl.bjernstam@skf.com
INVESTOR RELATIONS: Sophie Arnius, Head of Investor Relations
tel: 46 31-337 8072; mobile: 46 705-908 072; sophie.arnius@skf.com
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SOURCE SKF
