filtrationindustryANALYST

www.filtrationindustryanalyst.comISSN 1365-6937 September 2013

Sweden’s SKF is acquiring US-based Kaydon Corp in an all-cash

transaction valued at US$1.25 billion, including US$95 million of net debt.

Kaydon is a diversified industrial manufacturer of bearings, velocity control products and specialty products, including filters and filtrations systems. The company had sales of US$475 million in 2014 and more than 2100 employees. 62% of Kaydon’s sales are generated in North America, 24% in Europe, 12% in Asia Pacific and 2% in the rest of the world.

Commenting on the acquisition of Kaydon, SKF president and CEO Tom Johnstone said: “The complementary nature of their products and technologies, their geographical and customer presence and their manufacturing footprint will enable us to even better serve our customers and distributors in the industrial market worldwide. In particular this acquisition, combined with our other activities,

investments and acquisitions in the last few years, shows our strong commitment to the North American market.”

Kaydon chairman and CEO James O’Leary said: “Our board believes that the proposed transaction represents a compelling value for our shareholders. We believe that this transaction represents an excellent strategic fit for Kaydon that will allow our market leading businesses to accelerate their growth strategies by joining forces with SKF, a global industry leader.”

For further information, visit www.skf.com and www.

kaydon.com

COMMENTWhile this deal is mainly about bearings, SKF is also gaining a sizeable filtration business that includes filters and filter housings as well as gas-phase air filtration systems and replacement media. ■

Company ProfileEntegris 7Modern Water 8

Company Watch

Andritz 9Cummins 9Hyflux 10Outotec 10SPX 11Xylem 11

Diary 15

Dividends 5

Exchange Rates 16

Financial Calendar 14

In Brief 4

New Product Developments 14

NewsSKF to pay US$1.25bn for Kaydon Corp 1Tetra Pak takes over Danish membrane

filtration firm DSS Silkeborg 1Blackstone’s PGI makes an offer for Fiberweb 2METAWATER and RWB strengthen partnership 2Xylem CEO steps down 2RGF agrees to buy AFL Industries 3Growth slows at Mann+Hummel 3Pentair plans manufacturing JV in Saudi Arabia 3Ahlstrom lowers 2013 outlook 4Porvair ahead of management expectations 4Pervatech secures funding for expansion 4World Water Works partners with Israel’s

Aquanos Energy 5Nijhuis Water Technology acquires H2OK

Water and Energy 5BluMetric to represent LG Water’s membranes

in Canada 6IGS Group expands Houston HQ 6Norris Production Solutions purchases SPIRIT 5Grundfos half-year turnover up 3% 6Lanxess completes HQ relocation 6Eriez buys UK coolant filtration systems

supplier Centriforce 16Equity fund invests in Hayward Gordon 16

Orders & Contracts 13

People & Appointments 12

Stock Watch 15

Contents

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SKF to pay US$1.25bn for Kaydon Corp

Tetra Pak takes over Danish membrane filtration firm DSS Silkeborg

Packaging giant Tetra Pak has acquired DSS Silkeborg A/S, a

Danish company specialising in dairy membrane filtration technology.

DSS Silkeborg is a privately held company that develops membrane filtration systems for dairy applications, using reverse osmosis, nanofiltration, ultrafiltration and microfiltration technologies.

“Becoming an integral part of Tetra Pak, a large multinational company focused on the dairy sector, offers DSS an opportunity for a new phase of growth in the global dairy industry,” said Niels Osterland, co-founder and managing director of DSS Silkeborg.

“The acquisition of DSS adds to Tetra Pak’s expertise in membrane filtration

technology, enabling us to provide our customers with an even wider range of processing solutions for dairy, cheese and whey as well as other beverages and prepared foods,” said Tim High, executive vice president Processing Systems, Tetra Pak.

DSS will remain in Silkeborg, Denmark with its current management team as part of Tetra Pak’s Cheese and Powder business unit.

This is Tetra Pak’s second filtration acquisition in the last nine months. Late last year, Tetra Pak acquired Minneapolis, USA-based Filtration Engineering Co (see Filtration Industry Analyst, January 2013).

For further information, visit www.tetrapak.com and

www.dss.eu