Timken (NYSE:TKR) is soon to divide in two, if the company's plans come to fruition. The firm announced that its board "has approved a plan to pursue a separation" of its steel assets from its bearings and power transmission units. The two resulting entities would be separate, publicly traded companies.

The latter, which is the larger of the two by virtue of its roughly $3.4 billion in annual revenue, will inherit the Timken brand name. The steel business has yet to be christened; it has around half of the revenue of its sibling-to-be.

Timken anticipates that the transition should be effected within a year, and in a manner that is tax-free to shareholders. 

A key reason for the move is a desire to boost the market value of the two businesses. In the press release announcing the news, Timken quoted Joseph Ralston, the lead independent director of its board, as saying that, "Even with the company's success in improving performance in recent years and an impressive track record of accomplishments, the company's share price has not appropriately reflected our significant progress."