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The Timken Company (TKR - Snapshot Report), a producer of anti-friction bearings and steel, recently acquired the assets of privately held Smith Services Inc. The value of the acquisition was not made public.

Based in Princeton, W.Va., Smith Services is an electric motor repair specialist. The company repairs and rewinds 200 to 3,500 horsepower range electric motors along with undertaking on-site analysis and repairs.

Smith Services has its operations scattered over seven states in the region, where it serves the power generation, paper, steel, petrochemical, nuclear and mining markets.

The repair business of Smith Services complements that of Timken, making it easier to integrate the two. This acquisition of Smith Services is expected to help Timken expand its reach geographically as well, considering that Smith Services is located at the heart of the industrial region, Princeton.

Timken has been following a strategy of expanding regionally. This acquisition is regarded as a step ahead in the process, following the acquisition of Wazee Companies, LLC, last year.  

Revenue from the acquired company will become a part of The Timken Company's Process Industries segment. Reportedly, Smith Services generated revenues of ~$17.0 million in 2012, whereas Timken’s Process Industries segment reported revenues of $1.3 billion during the same time.

Although the combined effects of the acquisition on sales and earnings are yet to be ascertained, we expect the acquisition to be a strategic fit for Timken.

Timken is scheduled to release its first quarter 2013 results on Apr 24. The current Zacks Consensus Estimate stands at 80 cents for the quarter, representing a year-over-year decline of 49.1%.

Other stocks worth a look in the industry are NSK Ltd. (NPSKY), carrying a Zacks Rank #1 (Strong Buy); whereas Kaydon Corporation and Worthington Industries Inc. (WOR - Snapshot Report) carry a Zacks Rank #2 (Buy) each.

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