North Canton, Ohio – – September 28, 2026 -- The Timken Company has completed the sale of its belts business assets to Gates Industrial Corporation Ltd. (NYSE: GTES), marking a strategic exit from the belts manufacturing segment. Financial terms of the transaction were not disclosed.
Divestiture targets 2028 margin goals for Timken's Industrial Motion segment
Timken President and CEO Lucian Boldea called the sale "an important milestone in achieving our stated 2028 margin targets," noting the move allows the company to concentrate on its core advanced motion technology capabilities. The divested unit produced a broad line of belts for industrial, commercial and consumer applications.
Deal expected to lift EBITDA margins and boost EPS in 2027
Timken said the completed divestiture is expected to improve the adjusted EBITDA margins of its Industrial Motion segment and be accretive to earnings per share in 2027. Proceeds from the sale will support the company's capital allocation priorities, though specific reinvestment plans were not detailed.
Gates Industrial adds belts assets to its portfolio
Boldea said Timken views Gates as "the right owner of the business," thanking former belts-unit employees for their contributions to the company and its customers. Timken posted $4.6 billion in sales in 2025 and employs approximately 19,000 people across 45 countries, with strategic focus areas spanning aerospace and defense, power and electrification, and automation and industrial solutions.