Plymouth manufacturer Interlube is sold to $5billion turnover US company
An £8.7 million turnover manufacturing business that was established in Plymouth more than 90 years ago, has been sold to an American company for an undisclosed sum.
Interlube Systems Ltd has been acquired by Ohio-based Timken in a deal which also includes Cheltenham-based MSP Distributors Ltd, which was bought by Interlube in 2007.
Interlube, which employs 90 people, makes and markets automated lubrication delivery systems and related components. They are used in commercial vehicles, construction, mining and heavy and general industries.
The Timken Company manufactures and markets mechanical components and high-performance steel and is regarded as a world leader in its field.
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It generated sales of $5 billion last year, with around 20,000 people operating from 30 countries. It also has a joint venture in Zhuhai, China.
Interlube managing director Mike Cusack said: "Interlube are delighted to be joining The Timken group. Their global reach will allow Interlube to continue expanding its markets, and should provide enhanced investment in the Plymouth facility."
Timken vice president Michael J. Connors, said: "We're pleased to have Interlube join the Timken team.
"The management team brings a wealth of experience and established customer relationships, and their automated lubrication delivery systems certainly complement the Timken portfolio of power transmission products."
As part of its growth strategy, Timken has been steadily adding to its product portfolio and sees Interlube as highly compatible to its core product lines and recent acquisitions.
Mr Connors said: "Their expertise and quality product line, coupled with our global reach and market access, will allow us to grow market share for Interlube products, as well as expose new market space for existing Timken applications."
Established in 1922, Interlube was formerly known as Tecalemit and was part of the Siebe/Invensys Group until it underwent a management buyout in 2000. Since then, it has increased its market share with acquisitions and through a long established distributor network and worldwide sales force.
The company was advised by Gary Partridge, of PwC, and Richard Cobb, of Michelmores in Exeter.
Mr Partridge said: "We're delighted with the outcome, Timken is the perfect strategic buyer for Interlube."
Michelmores partner Richard Cobb said: "It is always rewarding to help an MBO team achieve the exit they have worked towards for many years.
"As a leading well-known manufacturer in the South West, Interlube has now got even greater global aspirations as part of the Timken group, and this must bode well for the UK operation and its staff."