NN Inc., a diversified industrial company specializing in high precision metal and plastic components and assemblies for a variety of markets on a global basis just announced that it will be selling its precision bearing components group to Tsubaki Nakashima Co., the world’s leading spherical surface processing technology company who is based out of Japan.
Tsubaki takes pride in high precision steel balls which are an important bearing component. The sale will take place for three hundred and seventy-five million dollars. The transaction will take place in late 2017. This will assist Tsubaki to produce revenue growth in the existing market, and in their new market creation.
Currently, NN Inc.’s precision bearing components group manufactures and sells steel balls, rollers and cages for the bearing components industry. This group has seven global locations and over one thousand two hundred and sixty employees. In 2016 the group had a total sales amount of over two hundred million.
NN Inc. provided a comment on the sale,
“The sale of precision bearing components furthers our long-term strategy to build a diversified industrial business with a comprehensive geographic footprint in attractive high growth market segments”.
NN Inc. has stated that they will used the profits from the sale into higher margin end-markets. This sale balances their portfolio and provides NN Inc. the money to execute their strategic expansion into more growth, with expansion to medical and aerospace end markets.
The bearing components industry is very large, Tsubaki is now able to work their way into this industry with an even larger head start than they had before. This purchase will really help Tsubaki to achieve many goals in their growth strategy, including customer service needs.