Timken Company, North Canton, Ohio

Timken to acquire Carlstar Belts Business

The Timken Company announced that it has reached an agreement with American Industrial Partners to acquire the Carlstar Belts Business, a leading North American manufacturer of belts used in industrial, commercial and consumer applications under well-recognized brands including Carlisle, Ultimax and Panther, among others. The transaction is expected to be accretive over the balance of 2015. For the 12 months ending June 30, 2015, Carlstar Belts sales were approximately $140 million.

"Acquiring the Carlstar Belts business expands our offering in existing and complementary end markets and broadens our ability to bring customers a diverse package of premium mechanical power transmission products and services," said Richard G. Kyle, Timken president and chief executive officer. "We're gaining a well-respected business with great talent and leadership, strong manufacturing capabilities, an expanding industrial product offering and excellent customer base."

Kyle noted Carlstar Belts brings an important new product category into the Timken portfolio, which continues to have bearings at its core. The company has diversified its portfolio beyond bearings in recent years, adding gearboxes, chain, couplings, lubrication systems and a variety of industrial services, which are marketed under well-known industrial brands including Philadelphia Gear, Drives and Interlube.

"This acquisition advances our strategic plan, which includes leveraging Timken technology and know-how to grow organically as well as building value through bolt-on acquisitions in bearings and adjacent products and services," Kyle added. "Like Timken, this business has long-standing customer relationships, deep technical expertise and unique operating capabilities, making it an ideal fit. While Carlstar Belts and Timken share many existing customers and applications, the acquisition will bring new market opportunities to each, extending our collective application and channel strength to benefit our OEM customers and distributors."

The transaction, expected to close in the third quarter of 2015, is subject to customary government and regulatory approvals and will be funded with a combination of cash and debt.

Timken Company, North Canton, Ohio