Kaydon Corp. (USA; NYSE: KDN) has acquired Avon Bearings Corp. (USA; website).

Kaydon paid USD $55 million cash, almost 2x Avon's leading sales forecast of $30 million for fiscal 2008.

Founded in 1969 as Formmet Corp., Avon was renamed SIFCO Bearings in 1981 but has had its geographically-determined Avon Bearings name since 1988. The Avon, Ohio area, although relatively small, has in recent years also become home to North Coast Bearings and Bearing Technologies LLC.

Avon manufactures specialty and custom large diameter bearings, turntable bearings, and slewing rings, with OD capacity from 10 inches through 240 inches. The company also offers large bearing remanufacturing, replacement bearings, and related services.

Slewing rings or slewing ring bearings are essentially very large thrust bearings, of various configurations and number of rolling elements, often including a gear circling the ID or OD.

An Avon market that particularly interests both today's investment community and Kaydon is wind energy -- for its growth potential, current profitability, and high profile in the investment community.

In wind energy applications, Avon supplies blade pitch and assembly yaw bearings.

Kaydon's potential synergies from the Avon acquisition extend through several markets, including construction equipment, logging machines, aerial lift baskets, high-precision medical and medical imaging equipment, military vehicles, tank turrets, radar antenna pivots, and a wide variety of industrial market applications.

With the Avon acquisition and capital expansion underway, Kaydon has become North America's largest manufacturer of slewing rings.

James O'Leary, Kaydon President and CEO, said: "This strategic acquisition represents an important step for Kaydon in accelerating growth in our market-leading bearings business. It will add immediate capacity to our growing wind energy platform, while both strengthening existing customer relationships and adding others." "In addition," he said, "Avon will broaden our presence in important offshore crane, construction and steel markets for very large diameter bearings, while also providing access to the refurbishment market, where Avon has built a leadership position over many years."