The Timken Co., Canton, Ohio, announces that its board of directors has approved a plan to pursue a separation of the company’s steel business from its bearings and power transmission business through a spinoff, creating two publicly traded companies.
A leading global manufacturer of carbon and alloy bar, producing ingot-cast and continuous-cast steel bars for the automotive, bearing, energy and industrial market segments, the separation is designed to improve performance in both companies. The new engineered steel company will operate as an independent publicly held company with estimated annual revenue of approximately $1.7 billion. The bearings and power transmission (B&PT) business will continue to operate as The Timken Company with estimated annual revenue of approximately $3.4 billion. The transaction is expected to be tax-free to shareholders and should be completed within 12 months.
Over the past decade, the engineered steel business has implemented changes that increased margins, dramatically lowered its breakeven point, and streamlined its supply chain. Headquartered in Canton, Ohio, the engineered steel company will include approximately 3000 associates, seven manufacturing plants, four warehouses, and five sales offices. The steel business is North America’s leading manufacturer of SBQ large bars for industrial markets and its largest producer of seamless mechanical tubing.
