Canton, Ohio-based Timken's (NYSE:TKR) shopping spree continues.
Last month, the industrial conglomerate expanded its capabilities in the lucrative field of electric motor repair by buying Princeton, W.Va.-based Smith Services. That followed the earlier acquisition of Wazee in Denver. Today, Timken announced its biggest deal so far this year, and a deal twice as large as Smith, as it acquires Saskatoon, Canada-based Standard Machine for $34 million.
As with prior acquisitions, Timken is keeping mum on the price it paid to acquire Standard, a maker and repairer of gearboxes for industrial customers in Canada and the western United States. But while we may not know the cost, we do know that Timken has now added about $78 million in new annual sales to its revenue stream. This should boost its annual revenues by about 1.7% and help to offset some of the revenue decline it's expected to suffer this year.
Regardless, investors bid down Timken shares by 0.4% in response to the news. Shares closed at $56.79 Monday.