The Timken split will create two companies with the steel business as a separate unit. Bloomberg reports on Sept. 6 that the Ohio manufacturer will end up with two publicly traded companies. Timken also shared that the CEO will be replaced.
The manufacturer will carry out the plan to split into two companies during the next year. The steel unit will be separated from the bearings and power transmission units. Shareholders have already shown their support for the decision.
Timken Co. will continue to operate the bearings and power transmission parts, but the steel business will have a new name. The company has not released information about the name, and it may be weeks before it is revealed.
The California State Teachers Retirement System and other shareholders initiated the spin off idea last year. Although Timken was hesitant and fought the change, it eventually agreed to split the company into two parts. Employees are concerned about the impact of the change on their pensions and contracts. The company has promised it will handle all obligations before the split becomes official in 2014.
The Timken family will continue to have leadership roles in the company, but some of their positions will change. CEO James Griffith will be replaced by Richard Kyle next year in the ball bearings unit, and Ward J. “Tim” Timken, Jr. will be the CEO of the steel business.