Timken To Split Into Two

(RTTNews) - Timken Co. (TKR) said Thursday that its board of directors has approved a plan to pursue a separation of the company's steel business from its bearings and power transmission business through a spinoff, creating two publicly traded companies.

Under this plan, the new engineered steel company will operate as an independent publicly held company with estimated annual revenue of about $1.7 billion.

The bearings and power transmission business will continue to operate as The Timken Co. with estimated annual revenue of about $3.4 billion.

The deal is expected to be tax-free to shareholders and should be completed within 12 months.

Timken said the decision to split the company into two companies resulted from a thorough evaluation by a strategy committee composed of independent directors and established by the board in response to shareholder input.

James Griffith will continue as president and chief executive officer of The Timken Company until the separation is complete, at which time he plans to retire after 30 years of service. The board plans to name Richard Kyle as The Timken Company's new president and chief executive officer, succeeding Griffith. Until then, Kyle has been named chief operating officer of the B&PT business.

The board also plans to name Ward Timken, Jr. to lead the new engineered steel company as its chairman and chief executive officer.