"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.