On Thursday, Timken Co. (TKR
) announced that its board of directors has approved a plan to separate the company’s steel business from its bearing and power transmission business.
The separation will create two publicly-traded companies, with the steel company anticipating annual revenue of $1.7 billion, and the bearing and power transmission company having estimated annual revenue of $3.4 billion.
The company anticipates that the split of TKR will be tax-free for all shareholders, and expects the separation to be completed within 12 months.
TKR’s shares were up $1.79, or 3.06%, at market close on Thursday. YTD, the stock is up more than 19%.
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