SKF Divests Non-core Aerospace Operation for USD 220 Million
"Aerospace will remain one of our largest customer industries and we will continue to invest and strengthen our position in core Aerospace segments”, says Rickard Gustafson, President and CEO.
As part of the Group's decision to focus on its core aerospace business and exit strategically non-strategic areas, SKF has signed an agreement to sell its tyre and seal business in Hanover, Pennsylvania, USA.
The Hanover ring and seal business will be sold to Carco PRP Group through its US aerospace subsidiary PCTI for USD 220 million, equivalent to approximately SEK 2.3 billion. The Hanover plant will produce mechanical seals and tyres with annual sales of around SEK 700 million in 2023.
"I am pleased that we have been able to deliver on our earlier promises and successfully reached an agreement to sell this successful but non-core business at a value-enhancing multiplier. I am confident that under the new ownership Hannover will continue to provide high quality solutions to customers. The aerospace industry will continue to be one of our largest customer segments and we will continue to invest and strengthen our position in the core aerospace segments," said Rickard Gustafson, CEO.
SKF will continue to focus its aerospace business on the supply of aircraft engines and aircraft bearings, with an annual turnover of approximately SEK 6 billion. Customer offerings in these core areas will be further strengthened through investments in product development, customer service and modern manufacturing.
SKF is also exploring opportunities to sell its aerospace precision elastomer devices (PED) business in Elgin, Illinois, USA. The PED business is also non-strategic, but is smaller than the Hannover business, and the exit process is proceeding as planned.
The sale of Hannover is expected to be completed in the first quarter of 2025, subject to regulatory approval.