North Canton, OH-based bearings and industrial motion products manufacturer The Timken Company entered into a definitive agreement to sell the assets of its belts business to Gates Industrial Corp., headquartered in Denver, CO. 

Financial terms of the agreement were not disclosed. Gates and the belts business of Timken will continue to operate as separate entities until the transaction closes.

“The sale of our belts business is consistent with our near-term strategic priorities and our 80/20 approach to structurally improve margins, grow faster in the most profitable verticals and create value for shareholders,” said Lucian Boldea, Timkin President and CEO in the May 1 press release. “We are applying this same rigor across our portfolio to ensure we leverage our core competencies where they drive the greatest impact.”

Gates officials said the acquisition is expected to bring additional market presence.

“Gates is expanding customer access and opportunities in priority markets, such as the industrial OEM and aftermarket channels, as well as the power sports segment of our mobility business unit,” Tom Pitstick, Gates President of the Americas, said in aMay 1 press release. “The acquisition of the belts business from Timken broadens our channel and application coverage.”

For Timken, the divestiture of the belts business is expected to improve the adjusted EBITDA margins of the Industrial Motion segment. The company plans to provide the estimated impact to margins at its upcoming Investor Day on May 20.

Proceeds from the divestiture are intended to be used to fund Timken’s capital allocation priorities. The transaction is expected to close in the third quarter of 2026 and is subject to customary closing conditions.

Timken posted $4.6 billion in sales in 2025 and employs approximately 19,000 people globally, operating from 45 countries.