Timken to buy Carlstar Belts

CANTON – The Timken Company, which employs about 330 people in Bucyrus, has reached an agreement through a private equity firm to acquire Carlstar Belts, a Missouri-based manufacturer of belts used in industrial, commercial and consumer applications.

The $220 million purchase, to be funded with a combination of cash and debt, represents a diversification for Canton-based Timken, which manufactures automotive bearings as well as bearings for use in small trailers and industrial applications, such as machinery and machine tools, at its 2325 Mansfield St. facility in Bucyrus.

Although bearings remain at the core of its business, Timken has diversified its portfolio in recent years, adding gearboxes, chain, couplings, lubrication systems and a variety of industrial services.

“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,” Richard G. Kyle, Timken president and CEO, said.

Carlstar Belts posted sales of about $140 million for the 12 months ended June 30. Founded more than 100 years ago as part of the Dayco Corporation, the manufacturer, headquartered in Springfield, Missouri, employs about 750 people.

“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 said.

The acquisition, expected to be completed this quarter, is subject to government and regulatory approvals.

Shares in Timken were trading at $32.67 Tuesday afternoon on the NYSE, down from $42.68 at the end of 2014 and $44.51 a year ago.