Diversified manufacturing company Carlisle Companies Inc. (CSL: Quote) Monday announced that it has signed a definitive agreement to sell Carlisle Transportation Products or CTP business segment to private equity firm American Industrial Partners of New York for cash at an enterprise value of $375 million.
It was on July 23, that Carlisle engaged SunTrust Robinson Humphrey as a financial advisor to assist in evaluating strategic alternatives for CTP. During the second quarter, Carlisle recorded a non-cash pre-tax loss of $100 million at CTP for goodwill impairment.
David Roberts, Carlisle's chairman, president and CEO said, "While we believe the significant restructuring of CTP in recent years has stabilized the business and provided a foundation for a favorable outlook, the business is not core to Carlisle's growth strategy nor supportive of our long-term operating profit goals and expectations."
CTP makes bias-ply and radial tires, stamped and roll-formed steel wheels and tire and wheel assemblies to non-automotive customers, and power transmission belts and related components to industrial customers. CTP had sales of $778 million in 2012.
The transaction is expected to close in the first quarter of 2014, subject to customary closing conditions, including regulatory clearances.
CSL closed Friday's regular trading at $72.04 on the NYSE.
by RTT Staff Writer
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