Carlstar Group to Strengthen Tire & Wheel Product Portfolio, Reached Agreement to Sell Belts Business
Aug 4, 2015
The Carlstar Group LLC (“Carlstar”), a premier producer of specialty tires and wheels, announced today that it has reached an agreement with The Timken Company (“Timken”; NYSE: TKR; www.timken.com), the world leader in tapered roller bearings, to sell the Carlstar Belts Business (“Carlstar Belts”). The transaction will allow Carlstar to focus on the growth of its Tire & Wheel business with its current portfolio of industry-leading products, including Carlisle®, ITP®, Marathon, Black Rock®, Unique® and Cragar® brands.
“While the decision to sell our Belts business was not an easy one, its product portfolio is an excellent strategic fit for Timken,” said John Salvatore, CEO of Carlstar. “The divestiture will allow Carlstar to focus on growing our core Tire & Wheel business and remain committed to providing our customers world class products, service, and support.”
Carlstar is actively growing the Tire & Wheel business both with existing customers and through select strategic acquisitions, including the recently announced acquisition of Marathon Industries. Carlstar has a strong track record of developing high-performing tires and wheels for its diverse set of end markets, including agricultural and industrial equipment, outdoor power equipment, powersports and heavy trailers, among others. Marathon Industries’ acquisition in July further expanded the Tire & Wheel portfolio and strengthened the technical expertise of Carlstar through its portfolio of solid polyurethane tires, flat-free Universal Fit® tires, pneumatic tires and tire sealant.
The transaction is expected to close in the third quarter of 2015 following customary government and regulatory approvals.
About The Carlstar Group
The Carlstar Group LLC (formerly CTP Transportation Products) is a leading producer of specialty tires and wheels for agriculture, construction, industrial, outdoor power equipment, powersports, towables and trailers. The Carlstar Group offers a comprehensive line of performance products for original equipment and aftermarket customers with a strong family of brands including Carlisle® tires and wheels, ITP® tires and wheels, Marathon tires, as well as Cragar®, Black Rock® and Unique® automotive wheels. Products are made in ISO-registered manufacturing facilities, supported by innovative product development and a team focused on customer satisfaction. The Carlstar Group employs over 3300 associates in 21 facilities located in five countries. Since 1917, a culture of converting great ideas into advanced products has created a legacy of excellence in product innovation, quality and customer service. Further information is available at www.carlstargroup.com.
About Carlstar Belts Business
Carlstar Belts supplies power transmission belts for industrial, commercial and consumer applications throughout North America. Originally founded over 100 years ago as part of the Dayco Corporation, the business today has approximately 750 employees and is headquartered in Springfield, Mo. Carlstar Belts manufactures industry-leading products with well-recognized brands such as Carlisle®, Ultimax® and Panther®. The product portfolio of more than 20,000 SKUs is specifically engineered for demanding applications and is designed for maximum performance and durability. Products are available in wrap molded, raw edge, v-ribbed and synchronous belt designs.
About The Timken Company
The Timken Company (NYSE: TKR; www.timken.com) engineers, manufactures and markets bearings, transmissions, gearboxes, chain and related products, and offers a spectrum of powertrain rebuild and repair services. The leading authority on tapered roller bearings, Timken today applies its deep knowledge of metallurgy, tribology and mechanical power transmission across a variety of bearings and related systems to improve reliability and efficiency of machinery and equipment all around the world. The company's growing product and services portfolio features many strong industrial brands including Timken®, Fafnir®, Philadelphia Gear®, Drives® and Interlube™. Known for its quality products and collaborative technical sales model, Timken posted $3.1 billion in sales in 2014. With 14,000 employees operating from 28 countries, Timken makes the world more productive and keeps industry in motion.