The Timken Company announced that its board of directors 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. Under this plan, the new engineered steel company will operate as an independent publicly held company, and the bearings and power transmission (B&PT) business will continue to operate as The Timken Company. The transaction is expected to be completed within 12 months. The board recognized the benefits shared between the businesses and will work to maintain them through a mutually beneficial business relationship between the two independent companies.
Headquartered in Canton, Ohio, the engineered steel company will include seven manufacturing plants, four warehouses and five sales offices. The steel business is a leading manufacturer of SBQ large bars for industrial markets and a producer of seamless mechanical tubing. The B&PT business will have 35 manufacturing plants, 25 service and repair facilities, four technology centers, and an extensive network of sales offices and warehouses around the globe.
James W. Griffith will continue as president and CEO of The Timken Company until the separation is complete, at which time he plans to retire. The board plans to name Richard G. Kyle as The Timken Company’s new president and CEO. The board also plans to name Ward J. Timken Jr. to lead the new engineered steel company as its chairman and CEO.