Carlisle Companies Inc. is selling Carlisle Transportation Products (CTP) to American Industrial Partners (AIP) of New York, N.Y., for $375 million in cash.
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first quarter of 2014.
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. The tire division had 2012 sales of $778 million.
AIP is a middle market private equity firm that invests in North American industrial businesses serving domestic and global markets.
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.
Carlisle’s tire division is not a part of the company’s growth strategy, according to David Roberts, Carlisle’s chairman, president and CEO.
“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.
“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,” says Roberts.
