The divestiture involves the transfer of Timken’s entire belts portfolio, which spans industrial, commercial, and consumer applications, to Gates. Lucian Boldea, president and chief executive officer of Timken, characterized the sale as a pivotal step in the company’s long-term financial strategy. By shedding the belts unit, Timken aims to concentrate resources on its primary competencies, specifically within its Industrial Motion segment.

Management anticipates the transaction will yield tangible financial benefits, projecting an improvement in adjusted EBITDA margins and a positive contribution to earnings per share by 2027. The proceeds from the sale are earmarked to support Timken’s capital allocation priorities. The company, which reported $4.6 billion in sales in 2025, maintains a workforce of approximately 19,000 across 45 countries, continuing its focus on specialized engineering for the aerospace, defense, and automation sectors.