Cone Drive Scheduled to be Acquired by Ohio Company

[XLFD]

The Timken Company, a world leader in engineered bearings and power transmission products based in Canton, Ohio, announced on Tuesday, July 24 that it has reached an agreement to acquire Cone Drive Operations Inc., a leader in precision drives used in diverse markets including solar, automation, aerial platforms, and food and beverage, with a sizable holding in Ludington.  

Across its three locations (Traverse City, Ludington and a subsidiary in China), the company has 450 employees (about 170 in TC, 30 in Ludington).  Cone Drive serves 30 markets, including solar, satellite communications, oil and gas, robotics, food processing and packaging, plastics, and construction. The company also remains an important defense contractor, with a Cone Drive gear on every Predator drone.

Cone Drive moved from Detroit to Traverse City in 1950, and has specialized in “double enveloping worm gearing.” Featuring a unique contoured design, this type of gear spreads the load of the gearbox across more surface area than a standard gear.  The added surface area makes it possible for Cone Drive to build more powerful gears in smaller packages.  The gearing was used in most every gun used by American soldiers in WW2, which accounted for the move out of Detroit into a rural area.

Cone Drive originally established itself in Ludington at 401 E. Dowland, moving out to new and larger facility (seen above) at the PM Township Industrial Park in 1997.  It is owned by the Scottish private equity firm Clyde Blowers Capital, which acquired the industrial gearing manufacturer in 2012.

In 2017, Timken generated $3 billion in revenue and reported net income of $203.4 million, and project that the acquisition will boost earnings by around $100 million.  Timken President and CEO Richard Kyle said the addition of Cone Drive will boost his company’s power transmission offerings in global markets, while also giving it access to an additional global customer base and manufacturing operations in the United States and China. The deal also enhances Timken’s profit mix with the addition of a higher margin business.

“The acquisition of Cone Drive will deepen Timken’s position in attractive, high-growth end markets such as solar and increase our power transmission presence in China,” Kyle said in a statement. “Cone Drive is highly complementary to our business, and we plan to generate significant sales and cost synergies with this transaction.”

Terms of the deal have not been released, but Cone Drive has indicated in a release that all of its operations currently existing will continue.  

[Freedom Seeker]

thanks for the info, X, any info on the number of jobs that may come?

[XLFD]

In the initial revelations, there is no job gain or loss envisioned with the Timken acquisition.  Once this gets regulatory approval, we may know more, and we welcome any of our Cone Drive affiliated members or guests to give us updates.