Timken Snaps up Intelligent Machine Solutions

The Timken Company (TKR) acquired Intelligent Machine Solutions (iMS) to expand its Rollon linear motion solutions in industrial robotics for an undisclosed amount.

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Shares of Timken, the global manufacturer of bearings and power transmission products, have jumped 34.8% over the past year. (See Timken Company stock charts on TipRanks)

Founded in 2008 and based in Michigan, U.S., iMS is a manufacturer of industrial robotics and automation solutions. It generated revenues of $6 million for the 12 months ended June 30, 2021.

In 2018, Timken made its entry into the linear motion product space after it acquired Europe-based Rollon, a leader in engineered and specialized linear motion products.

The acquisition will complement and enhance the company’s Rollon linear motion product range with improved applications, including seventh-axis robotic transfer units (RTUs) and gantry systems.

Furthermore, the deal will strengthen Rollon’s leadership position in robotics and automation as well as in emerging end-markets like packaging and marine, aerospace, and automotive production plants.

Rudiger Knevels, CEO of Timken’s Rollon, commented, “The acquisition of iMS builds upon our established engineering expertise in power transmission and will enable us to compete more effectively and win new business in the heavy-duty linear motion space.”

The analyst further added, “This deal expands our product line and creates new opportunities for us in the growing and global $700 million robotic transfer unit industry.”

Morgan Stanley analyst Courtney Yakavonis recently reiterated a Hold rating on the stock with a price target of $84 (14.7% upside potential).

Overall, the stock has a Moderate Buy consensus rating based on 1 Buy and 1 Hold. The average Timken Company price target of $97 implies 32.5% upside potential from current levels.