SKF agree to acquire John Sample Group
Strategic acquisition of JSG set to strengthen SKF’s lubrication management capabilities
SKF have signed an agreement to acquire John Sample Group’s (JSG) lubrication and flow management businesses. As well-established providers of lubrication-management systems and services, the acquisition of JSG will further strengthen SKF’s offering in an identified growth segment, as well as their business operations in the expansive India and south-east Asia (ISEA) region.
With more than half of all premature bearing failures caused by poor lubrication and contamination, lubrication is a critical aspect in machine reliability with a direct impact on production output and quality, costs, and the environment.
SKF, who already have a strong position in automatic lubrication systems through the Lincoln and SKF brand, say the acquisition will provide access to JSG’s wide customer base, sales and distribution network, as well as engineering and services capabilities.
In their latest fiscal year JSG had sales of approximately SEK550 million, were margin accretive, and had 86 employees. Following the acquisition, net sales for SKF’s lubrication management business will be around SEK7 billion.
‘This acquisition is a good strategic fit as it allows us to become a significant lubrication systems player in the important ISEA region,’ said Thomas Fröst, president of independent and emerging business at SKF.
‘Lubrication is an important part of SKF’s portfolio of offering, enabling us to offer our customers tailored stand-alone lubrication solutions as well as improved bearing performance. As an essential part of industrial maintenance, effective lubrication management also contributes to a sustainable business and society.’
John Sample, executive chairman of John Sample Group Pty Ltd, said: ‘At this stage in my career, transition of the John Sample Group is a natural and positive evolution. It is important for me and my family when making any decision of this kind, to engage with a party whose future vision for JSG is as closely aligned with our purpose, values, and strategies.’
Founded in 1921, JSG are headquartered in Sydney, Australia, and serve a wide range of industries, including mining, construction, and off-highway, across the lubrication systems and instrumentation and flow product verticals. The acquisition is expected to be completed during fourth quarter of 2024.
