Timken Completes Sale of Belts Business to Gates
The Timken Company announced the completion of its belts business divestiture to Gates Industrial Corporation Ltd. The transaction aims to improve profitability and sharpen focus on core competencies.
NORTH CANTON, Ohio – The Timken Company, a provider of advanced motion technologies, has finalized the sale of its belts business assets to Gates Industrial Corporation Ltd. The financial terms of the transaction were not disclosed.
Company President and CEO Lucian Boldea stated that the divestiture is a significant step toward achieving the company's stated 2028 margin targets. He added that exiting the belts business allows Timken to increase its focus on its core competencies in advanced motion technology.
The divested business manufactured a range of belts for industrial, commercial, and consumer applications. Timken expressed confidence that Gates is the appropriate owner for this segment and thanked the employees of the belts business for their contributions.
The sale is expected to enhance the adjusted EBITDA margins for Timken's Industrial Motion segment and be accretive to earnings per share (EPS) in 2027. Proceeds from the divestiture will support Timken's capital allocation priorities.