The Timken Company (USA; NYSE: TKR) announced it will acquire Purdy Corp. (USA; privately held; website) for USD $200 million.

Founded in 1946, Purdy operates from a 180,000 square foot facility in Manchester, Connecticut.

A relatively low profile company, Purdy describes itself as a, "woman-owned, small, non-union business," manufacturing, "high quality aerospace-machined parts – primarily engine and drive train components." Purdy is an approved vendor to Allison, Bell, Boeing, GE, McDonnell Douglas, Pratt & Whitney, Sikorsky, and the U.S. Government.

The company supplies a wide swath of the fixed-wing and helicopter market with complete and fully tested transmissions and rotor assemblies -- such as shafts, rotor heads, hubs, spindles, swashplates, and similar components. Engine application capabilities include diffuser cases, turbine cases and auxiliary gearboxes.

Purdy is particularly active in government contracts for military aircraft applications and service; major contracts include Black Hawk helicopter rotor hubs, Apache helicopter transmissions, and similar equipment.

Gears and related components are a particular area of expertise; Purdy can, "develop, manufacture, harden and/or carburize, grind, lap, and inspect spiral bevel, hypoid, and spur gears." Purdy's hard turning to Rc68-70 limits the need for secondary finish grinding operations.

Timken quoted Purdy's annual sales are in the neighborhood of $87 million, although Purdy recently described itself as having sales of $100 million. Similarly, Timken quotes Purdy's employment as "over 200" while Purdy's website indicates 105.

Timken's sales numbers would put the acquisition value at 2.3 times trailing sales.

In its announcement, Timken said, "The acquisition will further expand the growing range of power-transmission products and capabilities Timken provides to the aerospace market and is expected to be accretive to earnings during the first year of ownership."

J. Ron Menning, head of Aerospace and Defense under Timken's Bearings and Power Transmission Group, said: "The combination of Purdy's technology, manufacturing, expertise and strong customer base make an excellent fit with Timken's growing aerospace business. As we accelerate our growth in this strategic market, we plan to add capacity and capabilities to expand the range of power-transmission products and services we can offer to create value for Timken's global customers."

Purdy will remain in Manchester, operating under the Aerospace and Defense division as Timken Aerospace Transmissions LLC. Purdy branding will remain active.