The Timken Company has completed the sale of its belts business assets to Gates Industrial, completing a divestiture intended to sharpen Timken’s strategic focus on its core advanced motion technology businesses. Financial terms of the transaction were not disclosed.
The divested operation manufactures belts used across a range of industrial, commercial and consumer applications. The business had been part of Timken’s Industrial Motion segment, which includes products and technologies used to manage motion and power transmission in industrial equipment and machinery.
Timken said the sale is consistent with its strategy of concentrating resources on businesses that are more closely aligned with its long-term growth priorities in engineered bearings and industrial motion technologies.
By exiting the belts business, Timken expects to simplify its portfolio while directing additional management attention and capital toward areas where it sees stronger opportunities for profitable growth and differentiated technology.
The company also expects the transaction to improve the adjusted EBITDA margin of its Industrial Motion segment by removing the belts operation from the segment’s financial results.
Timken anticipates that the divestiture will be accretive to earnings per share beginning in 2027.
The company plans to use proceeds from the sale to support its broader capital allocation priorities, which may include investments in organic growth, acquisitions, debt management and returns of capital to shareholders.
The completed transaction also transfers the belts business to Gates Industrial, a company focused on power transmission and fluid power technologies.
KEY QUOTES:
“This divestiture is an important milestone in achieving our stated 2028 margin targets. Exiting the belts business also allows us to increase focus on our core competencies in advanced motion technology.”
“We believe Gates is the right owner of the business. Thanks to our belts colleagues for their commitment to Timken and our customers through the years.”
Lucian Boldea, President and Chief Executive Officer of Timken
