Antitrust Law Daily Wrap Up, ANTITRUST NEWS: SKF gets antitrust clearance for acquisition of Kaydon, (Oct 9, 2013)
Organizations Mentioned:AB SKF | Kaydon Corp.
By Jeffrey May, J.D.
SKF Group has received approval from U.S. and German antitrust authorities for its proposed acquisition of Kaydon Corporation. SKF announced the approvals yesterday. The deal is valued at approximately $1.25 billion.
In its announcement, SKF said that it had waived a condition for approval of the Committee on Foreign Investment in the United States (CFIUS) under U.S. national security regulations. The company anticipates that administrative delays will lengthen the period for clearance; however, it has not been notified of any concerns or issues in the review process.
SKF Group, based in Sweden, describes itself as “a leading global supplier of products, solutions and services within rolling bearings, seals, mechatronics, services and lubrication systems.” U.S.-based Kaydon designs and manufactures bearings and velocity control products such as industrial shock absorbers, gas springs, and vibration isolation products.
The parties disclosed the terms of the transaction last month. Shortly thereafter, SKF launched an all-cash tender offer for all outstanding shares of Kaydon. The tender offer will expire on October 15. Upon completion of the tender offer, SKF would acquire all remaining shares through a short form merger.
According to SKF, “Kaydon is complementary to SKF’s existing business from both a product and geographic perspective.”
Companies: AB SKF; Kaydon Corp.
News: Antitrust