Timken Completes Sale of Timken Latrobe Steel

The Timken Co. completed the sale of its Latrobe Steel subsidiary in Latrobe, Pa., to a group of investors led by the Watermill Group, Hicks Holdings and Sankaty Advisors. Timken received about $215 million in cash, providing resources for general corporate purposes, including strategic growth initiatives and pension funding.

Latrobe Steel manufactures and distributes specialty steel for the aerospace, high speed, and tool and die markets.

Steven E. Karol, founder and managing partner of the Watermill Group, said, "Watermill has a long history of buying and helping businesses improve. Latrobe Steel is attractive to us due to its position in growing and profitable markets and its strong management team. Latrobe has manufacturing and distribution facilities that are up-to-date, well maintained and that will support the company's continued growth. We look forward to partnering with Hicks, Sankaty and local management in this endeavor."

"As with our recent sale of the precision steel components business in Europe and our intention to exit the tubing business in the United Kingdom, the sale of Latrobe Steel reinforces our focus on the alloy steel business," said Salvatore Miraglia Jr., president of Timken's Steel Group. "We invested in our alloy steelmaking capabilities during 2006, adding a new induction heat-treat line and expanding large-bar capacity, and will continue to look for opportunities to strengthen our portfolio in this core area going forward."