Timken said after the close Thursday that it would split into two businesses: engineered steel, and bearings and power transmission.
Shares of the specialty steel-products company Timken (TKR) were up 3% Thursday to close at $60.26, and they rallied another 6% to $64, a new 52-week high, after the close.
The Canton, Ohio company said that “upon separation,” the current CEO James W. Griffith, 59, will retire.The company said in a prepared release that Timken steel would be a tax-free spinoff to be completed in the next 12 months. Ward J. Timken, Jr. will be chairman and CEO of new engineered steel company, which would have $1.7 billion in revenue. Richard G. Kyle is to be president and CEO of the global bearings and power transmission company, with $3.4 billion in revenue. John M. Timken, Jr. will be non-executive chairman.
As we reported last fall, activist fund Relational Investors wanted Timken to split into two publicly traded companies, and the idea also had support from the California State Teachers' Retirement System.