One of Stark County's largest and most prominent businesses will split in two.
The Timken Company's board of directors voted Thursday to separate its steel business from its bearing and power transmission operation.
In a statement, Timken president and CEO James W. Griffith praised the move.
"We see this initiative - to build out two strong, focused companies - as further evidence of our commitment to drive value for our shareholders and our customers," he said.
The push for a split was led by the California State Teachers' Retirement System and Relational Investors LLC, both major owners of Timken stock. The two organizations spearheaded a non-binding vote among shareholders in May which narrowly supported a split. Timken then formed a committee and hired Goldman Sachs to explore whether a split would be beneficial.
"The process that the strategy committee completed convinced us of the value-creation opportunities that can come from separating the company's business," Timken chairman Ward J. "Tim" Timken said.
Both companies will continue to have headquarters in Stark County. The split is expected to take about one year and $125 million to complete. It won't face another shareholder vote, but it will need to withstand scrutiny from regulators.