TimkenSteel Corp. announced it has signed a purchase agreement with Daido Steel (Shanghai) Co., Ltd. with the intent to sell its TimkenSteel (Shanghai) Corporation Limited (TSS) subsidiary in China for approximately $7 million in cash.
The transaction is contingent upon completion of usual and customary due diligence. Close of the transaction is expected in the third quarter of 2021.
"With this arrangement, Daido will move from a valued supplier to a key authorized distributor of TimkenSteel products in China," stated Mike Williams, president and chief executive officer for TimkenSteel. "Daido and TimkenSteel have enjoyed a long relationship and have collaborated on everything from technical assistance to product development in order to support key customers in Asia and the United States. We thank the TSS team for their efforts on behalf of TimkenSteel and we wish everyone continued success."