NORTH CANTON, Ohio,
Aug. 3, 2015 /PRNewswire/ -- The
Timken Company (NYSE: TKR; www.timken.com), the world leader in
tapered roller bearings, today announced that it has reached an
agreement with American Industrial Partners to acquire the Carlstar
Belts Business ("Carlstar Belts"), 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
InterlubeTM.
"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.
About the Carlstar Belts Business
Carlstar
Belts supplies power transmission belts for industrial, commercial
and consumer applications primarily in North America. Originally founded over 100
years ago as part of the Dayco Corporation, the business today has
approximately 750 employees, is headquartered in Springfield, Mo., and sells its products under
industry-leading, well-recognized brands including Carlisle®, Ultimax® and
Panther®, among others. The Carlstar Belts product
portfolio features more than 20,000 SKUs specifically engineered
for demanding applications. The product line is engineered for
maximum performance and durability and is available in wrap molded,
raw edge, v-ribbed and synchronous belt designs.
About American Industrial Partners
American
Industrial Partners ("AIP") is an operationally oriented
middle-market private equity firm that makes control investments in
North American-based industrial businesses serving domestic and
global markets. The firm has deep roots in the industrial economy
and has been active in private equity investing since 1989. To
date, AIP has completed over 50 transactions and is currently
managing more than $1.1 billion in
equity capital. AIP invests in all forms of corporate divestitures,
management buyouts, recapitalizations and going-private
transactions of established businesses with revenues of
$75 million–$1 billion. For more
information about American Industrial Partners, contact
Ben DeRosa, partner, at
212-627-2360, extension 200 or visit
www.americanindustrial.com.
About The Timken Company
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®, Drives® and InterlubeTM.
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 complete the acquisition due to either
the failure to satisfy any condition to the closing of the
transaction, including receipt of regulatory approval, or the
occurrence of any event, change or other circumstance that could
give rise to the termination of the purchase agreement; 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.
Media
Contact:
Gloria
Irwin
Communications
Manager
Telephone:
234.262.3514
Mediarelations@timken.com
|
Investor Relations:
Shelly Chadwick
Vice President
– Treasury & Investor Relations
Telephone:
234.262.3223
Shelly.chadwick@timken.com
|
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SOURCE The Timken Company