Gates Completes Acquisition of the Belts Business from The Timken Company
Gates is also assuming operational control of a belts manufacturing facility in San Jose Iturbide, Mexico.
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Rhea-AI Summary
Gates Industrial (GTES) completed its acquisition of The Timken Company's belts business, including select manufacturing assets.
The acquisition adds manufacturing capacity and customer relationships to Gates' North American power transmission business across industrial original equipment manufacturers, the industrial aftermarket and mobility power sports. Gates is also assuming operational control of a belts manufacturing facility in San Jose Iturbide, Mexico, and adding employees from the acquired business. The company has developed an integration approach and plans to use its in-region manufacturing and distribution footprint to support customers through the transition.
Positive
- Acquisition completed: Gates acquired Timken's belts business, including select manufacturing assets.
- Manufacturing capacity expands in Gates' North American power transmission business.
- Customer relationships expand across industrial original equipment manufacturers, the industrial aftermarket and mobility power sports.
- Operational control of the San Jose Iturbide, Mexico, belts facility adds to Gates' North American footprint.
- Employees from the acquired business are joining Gates.
- Integration plan: Gates plans to use its in-region manufacturing and distribution footprint to support customers through the transition.
Negative
- None.
News Explained
Gates completed the acquisition, but did not disclose its financial terms, so this release establishes the operating assets transferred without establishing the purchase price or other economics of the deal.
Previous Acquisition Reports
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Gates agreed to acquire Timken's belts business; terms undisclosed, closing expected Q3.
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Key Terms
oem technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
The acquisition expands Gates' North American power transmission with additional manufacturing capacity and customer relationships across industrial original equipment manufacturers (OEM), the industrial aftermarket and mobility power sports markets, while also augmenting the company's talent base.
"The completion of this acquisition strengthens Gates' position in power transmission and supports our strategy to grow in industrial and mobility markets," said Tom Pitstick, president,
Gates has developed a structured integration approach and will leverage the broad in-region manufacturing and distribution footprint to support customers through this transition. As part of the transaction, Gates is also assuming operational control of the belts manufacturing facility in
Financial terms of the transaction were not disclosed.
About Gates Industrial Corporation Ltd.
Gates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse replacement channel customers, and to OEMs as specified components. Gates participates in many sectors of the industrial and consumer markets. Our products play essential roles in a diverse range of applications across a wide variety of end markets ranging from harsh and hazardous industries to everyday consumer applications, including virtually every form of transportation. Our products are sold in more than 130 countries across our three commercial regions: the Americas; Europe, Middle East & Africa; and Asia-Pacific. For more information, visit gates.com.
Forward Looking Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. These statements include, but are not limited to, statements related to the expected benefits of the acquisition and expectations regarding the performance of the Company's business and financial results. Such forward-looking statements are subject to various risks and uncertainties, including, among others, the possibility that the acquisition will not result in the benefits expected by Gates; risks related to the integration of Timken's belts business, including retention of customers and employees; U.S. policies, actions or legislation (including the imposition of tariffs), economic, political and other risks associated with international operations (including as a result of the ongoing conflicts in the Middle East and their impact on supply chains, such as reduced availability of certain of our production materials and increased supply costs, and economic conditions), availability of raw materials or other manufacturing inputs at favorable prices in sufficient quantities, or at a given time, changes in our relationships with, or the financial condition, performance, purchasing power or inventory levels of, of key channel partners, dependence on the continued operation of our manufacturing facilities, supply chains, distribution systems and information technology systems, our ability to forecast demand or meet significant increases in demand and market acceptance of new product introductions and innovations. Additional factors that could cause the Company's results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission, as such factors are or may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Media Contact
Raquel Fuentes
CorpComm@Gates.com
Investor Contact
Rich Kwas
InvesterRelations@Gates.com
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SOURCE Gates Corporation
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