Gates Industrial Corporation has closed on a deal to buy the belts business of The Timken Company, including some manufacturing assets.
"The completion of this acquisition strengthens Gates' position in power transmission and supports our strategy to grow in industrial and mobility markets," says Tom Pitstick, president of the Americas at Gates. "We are pleased to welcome the new team members who are joining Gates and look forward to building on our combined capabilities to create value for our customers, employees and stakeholders."
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The acquisition expands Gates' North American power transmission with additional manufacturing capacity and customer relationships across industrial OEMs, the aftermarket and mobility power sports markets, the company says, and augment the company's talent base.
"This divestiture is an important milestone in achieving our stated 2028 margin targets," says Lucian Boldea, president and CEO of The Timken Company. "Exiting the belts business also allows us to increase focus on our core competencies in advanced motion technology."
Gates says it has developed a structured integration approach and will leverage the broad in-region manufacturing and distribution footprint to support customers through the transition. It's assuming operational control of the belts manufacturing facility in Mexico.
"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," Boldea says.
Financial terms of the transaction were not disclosed. Timken says proceeds will help fund its capital allocation priorities and is expected to improve the adjusted EBITDA margins of the Industrial Motion segment.
