Sweden-based bearings maker SKF is set to divest its south-central Pennsylvania-based ring and seal business unit in a move that helps the company exit non-core aerospace markets.

To be sold to Carco PRP Group subsidiary PCTI for $220 million, the operation is based in Hanover, PA. It makes mechanical seals and rings and had 2023 annual sales of approximately $65 million. The pending deal was announced Oct. 29.

The transaction is expected to close in 1Q25.

SKF is also exploring options to divest its elastomeric device (PED) aerospace operation in Elgin, IL. The company said its PED unit is also non-strategic, but smaller than Hanover and that the exit process is “proceeding according to plan.”

On the expansion front, SKF announced Oct. 31 that it had completed the acquisition of the lubrication adn flow management business of John Sample Group — a lubrication system and full-service solutions provider with operations in Australia, New Zealand, Indonesia and Singapore. 

Terms were not disclosed for the deal, but SKF noted JSG had approximately $51 million in its latest fiscal year and has 85 employees. It will be integrated into SKF’s existing lubrication management business, strengthening offerings for customers in engineered solutions, heavy industries and mobile equipment.

Automotive Separation Update

On Sept. 17, SKF announced its plan to separate its Automotive business as a standalone business, which will result in a more industrial-focused SKF.

The company’s Oct. 31 report updated that SKF has “kick-started” the separation planning and formed a dedicated project organization with the aim of listing the Automotive business on Nasdaq Stockholm by the first half of 2026.

3Q Results

Meanwhile, SKF also shared its 3Q24 financial results on Oct. 30, showing annual sales declines in both its Industrial and Automotive units.

The company posted total 3Q sales of $2.22 billion, down 4.4% year-over-year on an organic basis. Industrial organic sales fell 4.6%, and Automotive organic sales fell 4.0%.

Looking forward, SKF expects a mid-single-digit organic 4Q sales decline year-over-year, and likewise for full-year organic sales.