CANTON, Ohio (AP) — An Ohio manufacturer says it is spinning its steel operations away from its bearings and power transmission businesses.
Canton-based Timken Co. announced Thursday it is splitting into two independent, publicly traded companies.
Timken's board of directors approved the plan, expected to be completed within 12 months.
"We see this initiative — to build out two strong, focused companies — as further evidence of our commitment to drive value for our shareholders and our customers," James Griffith, Timken president and chief executive officer, said in a statement.
The Canton Repository reports (http://bit.ly/17DwuEi ) the company's bearings and power transmission business will continue to operate as Timken Co. with estimated annual revenue of $3.4 billion.
The newspaper said the new engineered steel company will operate as an independent publicly-held company with estimated annual revenue of $1.7 billion.
Current Timken chairman Ward J. Timken Jr. will become chairman and chief executive officer of the new steel business.
"Today's decision is the appropriate 'next step' to build on the momentum created by our improvement in the performance and underlying fundamentals of each of our core businesses," Timken said.
Shareholders supported the split in a non-binding vote at the company's annual meeting earlier this year.
Shareholders supported the split in a non-binding vote at the company's annual meeting: 47 percent of Timken shares were voted in favor of a spinoff of the steel business and 41 percent were voted against. Of the shares that were voted, about 53 percent were voted in favor of the spinoff.
The decision to split Timken into two companies followed an evaluation by a strategy committee of independent directors that was established by the Timken board in response to input from shareholders.