The BFGoodrich Company is to acquire Dana Corporation’sGlacier Industrial Bearings business and combine it with Goodrich’s existing self-lubricated polymer bearings business, known as Garlock Bearings.
The Dana business, with sales approaching $100 million, will approximately triple the size of Garlock Bearings.
While terms were not disclosed, the acquisition is expected to beaccretive immediately and add up to $.05 to Goodrich’s per-share earnings under existing accounting ($.07 under proposed FASB goodwill accounting) in the first 12 months under the company’s ownership.
The acquisition will be funded from Goodrich’s existing cash balances and is expected to close in the third quarter, subject to the usual reviews and conditions. Dana will retain all personnel and assets involved in its engine bearings business. Under the agreement, Goodrich is purchasing research and development and manufacturing operations in England, France, Germany, Scotland, Slovakia, and Brazil as well as an international sales and technical support organization.
Current employment is approximately 800. Goodrich will also receive all the patents, trademarks, and intellectual property associated with the industrial polymer bearings business including the Glacier brand name, and will acquire Dana’s minority interest in an existing venture with Garlock Bearings that manufactures and sells metal-backed polymer bearings.