Timken acquires Carlstar Belts business
North Canton, OH – The Timken Company, a manufacturer of tapered roller bearings, has reached an agreement with American Industrial Partners of New York, NY, to acquire the Carlstar Belts business, a North American manufacturer of belts used in industrial, commercial and consumer applications under brands including Carlisle, Ultimax and Panther, among others. The transaction will allow Carlstar to focus on the growth of its tire and wheel business with its current portfolio of products, including Carlisle, ITP, Marathon, Black Rock, Unique and Cragar brands. End users for these products include those in the agricultural and industrial equipment markets.
“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 Interlube.
“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. For the 12 months ending June 30, 2015, Carlstar Belts sales were about $140 million.
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 brands such as 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 moulded, raw edge, v-ribbed and synchronous belt designs.
About American Industrial Partners
American Industrial Partners 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.
About The Timken Company
The Timken Company engineers, manufactures and markets bearings, transmissions, gearboxes, chain and related products, and offers a spectrum of powertrain rebuild and repair services. An 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 industrial brands, including Timken, Fafnir, Philadelphia Gear, Drives and Interlube.