Carlisle to sell Carlisle Transportation Products

Carlisle Companies Incorporated announced on Oct. 21 the signing of a definitive agreement to sell Carlisle Transportation Products (CTP) to American Industrial Partners of New York, N.Y., for cash at an enterprise value of $375 million. The transaction is subject to customary closing conditions, including regulatory clearances, and is expected to close in the first quarter of 2014.

With 2012 sales of $778 million, CTP manufactures and distributes 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 globally.

Carlisle announced on July 23, 2013, that it recorded a non-cash pre-tax loss of $100 million at CTP for goodwill impairment during the second quarter and engaged SunTrust Robinson Humphrey as a financial advisor to assist in evaluating strategic alternatives for CTP.

“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,” said David A. Roberts, Carlisle’s chairman, president and CEO. “The sale of CTP is a major step in furtherance of Carlisle’s initiatives to focus on and invest in higher-margin, faster-growing businesses. I want to thank the customers of CTP for their loyalty. As importantly, I also want to thank the employees of CTP for their dedication and hard work over the years to make CTP a world-class industrial business.”