Timken Company announced that it has entered into a definitive agreement to sell the assets of its belts business to Gates Industrial Corporation, with the transaction expected to close in the third quarter of 2026.
The belts business, which produces industrial, commercial and consumer belts, has historically been a lower‑margin segment. Timken’s president and CEO Lucian Boldea said the sale aligns with the company’s 80/20 strategy to concentrate resources on higher‑growth, higher‑margin verticals and to structurally improve overall profitability.
Proceeds from the divestiture will be used to fund Timken’s capital allocation priorities, including debt reduction and share repurchases. The transaction is also projected to lift the adjusted EBITDA margin of Timken’s Industrial Motion segment by removing a lower‑margin line of business.
Gates Industrial, a global leader in power‑transmission products, will add the belts portfolio to its existing product mix, strengthening its market position and creating potential synergies with its current offerings.
The deal value has not been disclosed publicly, so the transaction’s financial terms remain confidential at this time.
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