September 1, 2015
The Timken Company (NYSE: TKR; www.timken.com), the world leader in tapered roller bearings, today announced that it has completed the previously announced transaction with American Industrial Partners to acquire the Carlstar Belts Business. The business, a leading North American manufacturer of belts used in industrial, commercial and consumer applications, markets well-recognized brands including Carlisle®, Ultimax® and Panther®, among others.
"We are excited to bring the belts business into The Timken Company. Belts are an integral part of our customers' power transmission systems and Carlstar has a long history of leadership in industrial belt manufacturing, technology and quality," said Richard G. Kyle, Timken president and chief executive officer. "Our work leading up to closing has only reinforced that we have acquired a strong business with a talented workforce."
The company expects the transaction to be accretive over the balance of 2015. For the 12 months ending June 30, 2015, Carlstar Belt sales were approximately $140 million.
The belts business further diversifies the company's portfolio beyond engineered bearings, bringing customers an expanded offering of premium mechanical power transmission products and services. In addition to belts, the Timken power transmission portfolio includes gearboxes, housed unit bearings, chain, couplings, lubrication systems and a variety of industrial services, which are marketed under well-known industrial brands including Timken®, Philadelphia Gear®, Drives® and Interlube™.
"Our businesses are highly complementary, with Timken serving many of the same end-markets and customers," said John Vassilaros, who will continue to lead the belt business for Timken. "Our customers and our employees view the transaction positively, and we are pleased to be joining an industrial leader that will invest in our business and shares our passion for power transmission products."
Carlstar Belts, headquartered in Springfield, Mo., has approximately 750 employees and two U.S. manufacturing facilities. The product portfolio features more than 20,000 parts engineered for demanding applications and includes wrap molded, raw edge, v-ribbed and synchronous belt designs.
The Timken Company (NYSE: TKR; www.timken.com) engineers, manufactures and markets bearings, transmissions, gearboxes, chain and related products, and offers a spectrum of powertrain rebuild and repair services. The leading authority on tapered roller bearings, Timken today applies its deep knowledge of metallurgy, tribology and mechanical power transmission across a variety of bearings and related systems to improve reliability and efficiency of machinery and equipment all around the world. The company's growing product and services portfolio features many strong industrial brands including Timken®, Fafnir®, Philadelphia Gear®, Carlisle®, Drives® and Interlube™. Known for its quality products and collaborative technical sales model, Timken posted $3.1 billion in sales in 2014. With 14,000 employees operating from 28 countries, Timken makes the world more productive and keeps industry in motion.
Certain statements in this release (including statements regarding the company's estimates and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, the statements regarding the company's expectations regarding accretion and the expected market opportunities are forward-looking. The company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: the inability to successfully integrate the newly acquired business into the company's operations or achieve the expected synergies associated with the acquisition; and adverse changes in the markets served by the newly acquired business. Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended Dec. 31, 2014, quarterly reports on Form 10-Q and current reports on Form 8-K. Except as required by the federal securities laws, the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.