Carlisle is selling tire division for $375 million
Carlisle Companies Inc. is selling Carlisle Transportation Products (CTP) to American Industrial Partners (AIP), a private equity firm, for $375 million in cash.
The transaction is expected to close in the first quarter of 2014. The company says CTP will continue to offer specialty tire, wheel and power transmission products under the Carlisle name.
AIP is a middle market private equity firm that invests in North American industrial businesses serving domestic and global markets.
“With their guidance, we look forward to tremendous growth opportunities for CTP,” says Kevin Forster, CTP president.
CTP will continue to focus on improving its market position, improving operations and expanding sales to global customers, according to Forster.
Carlisle Companies 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.
The tire division, which had 2012 sales of $778 million, 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.
For more information, visit www.carlisle.com.