Carlisle sells tyre and wheel business

In July, Carlisle Companies announced it was seeking “strategic alternatives” for its Carlisle Transportation Products (CTP) business after it recorded a non-cash pre-tax loss of $100 million due to goodwill impairment during the second quarter of 2013. This strategic alternative turned out to be a divestment; this week the company said the tyre and wheel business has been purchased by American Industrial Partners for an enterprise value of US$375 million. The deal is expected to close in the first quarter of 2014.

“While we believe the significant restructuring of CTP in recent years has stabilised 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 Carlisle chairman, president and CEO David A. Roberts. “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.”

With 2012 sales of $778 million, CTP manufactures and distributes cross-ply and radial tyres, stamped and roll-formed steel wheels and tyre and wheel assemblies to non-automotive customers, along with power transmission belts and related components to industrial customers around the world.