JACKSON TWP. ‒ The Timken Co. is selling its belts business.
The bearings and industrial motion company announced an agreement on May 1 with Denver-based Gates Industrial Corp. plc. Financial terms were not disclosed.
The deal is expected to close in the third quarter.
“The sale of our belts business is consistent with our near-term strategic priorities and our 80/20 approach to structurally improve margins, grow faster in the most profitable verticals and create value for shareholders,” Lucian Boldea, Timken president and chief executive officer, said in a prepared statement.
“We are applying this same rigor across our portfolio to ensure we leverage our core competencies where they drive the greatest impact.”
Timken said in a news release that it would use the revenue “to fund the company’s capital allocation priorities.”
Timken makes belts used in industrial, commercial and consumer applications.
The United Steelworkers union told KYTV that the Timken Belts plant in Springfield, Missouri will close because the facility wasn’t included in the sale. Timken had laid off about 40% of the workforce there last year, the television station said.
A voicemail seeking comment was left May 1 with Timken.
Gates produces power transmission products.
“Gates is expanding customer access and opportunities in priority markets, such as the industrial OEM and aftermarket channels, as well as the power sports segment of our mobility business unit,” Gates Americas President Tom Pitstick said in a prepared statement. “The acquisition of the belts business from Timken broadens our channel and application coverage.”
This article originally appeared on The Repository: Timken Co. selling its belts business to Gates Industrial
Reporting by Canton Repository / The Repository
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