Carlisle Co. (CSL) Friday said it agreed to acquire brake friction products maker Hawk Corp. (HWK) for $50 a share, giving the target company an equity value of about $413 million.
The acquisition, approved unanimously by the boards of both companies, will result in Hawk becoming a part of the Carlisle Industrial Brake & Friction unit, Carlisle and Hawk said in a joint statement.
"This transaction is consistent with our long-term strategic goals to reach $5 billion in revenue and 15% EBIT margins, to expand globally and to produce strong free cash flow," Carlisle Chairman David A. Roberts said in the statement.
The transaction is expected to be accretive to Carlisle in the first year. The acquisition of Hawk is expected to result in annual run-rate synergies for Carlisle of approximately $20 million by 2012, of which a portion will be realized during 2011.
The transaction, structed as a cash tender offer, will be funded with Carlisle's cash on hand and existing revolving credit facility.
Hawk Chairman and Chief Executive Ronald E. Weinberg, along with directors Norman Harbert and Byron Krantz, who collectively hold approximately 34% of Hawk's outstanding common stock, have agreed to sell their shares.
Both companies expect the transaction to be finalized by the end of the year.