Carlisle Companies to Sell Carlisle Brake & Friction
May 25 2021 - 8:45AM
Business Wire
Carlisle Companies Incorporated
(NYSE:CSL) today announced the signing of a definitive agreement to
sell Carlisle Brake & Friction (CBF) to CentroMotion of
Waukesha, Wisconsin in a transaction structured to provide Carlisle
the opportunity to receive $375 million, including receipt of $250
million cash at closing, subject to certain adjustments, and the
right to receive an additional post-closing cash payment of up to
$125 million based on CBF’s achievement of certain adjusted EBITDA
targets for calendar year 2021. The transaction is subject to
customary closing conditions, including regulatory clearances, and
is expected to close in the third quarter of 2021. The sale of CBF
was contemplated as part of Carlisle’s portfolio optimization
strategy, as laid out in Vision 2025.
CentroMotion is a leading manufacturer of motion, actuation and
control solutions for the agriculture, specialty and commercial
vehicle, construction and industrial end markets. CentroMotion is a
portfolio company of One Rock Capital Partners, LLC.
CBF is a globally recognized leader in the development and
manufacture of highly innovative brake and friction solutions to
service a diverse range of off-highway vehicle end markets,
including construction, mining, agriculture and aerospace. CBF’s
products include hydraulic control products, industrial brake
assemblies, and wet and dry friction materials for brake, clutch
and transmission applications. The CBF segment reported $275.3
million of revenue in 2020.
Chris Koch, Chairman, President and Chief Executive Officer,
said, “The divestiture of Brake & Friction is consistent with
our Vision 2025 strategy to simplify our portfolio, which, we
believe, will deliver better returns for our shareholders. As we
enter a post-COVID-19 world, this transaction also aligns with
Carlisle’s pivot to focusing on expansion of our building products
segment.
“We believe the sale to CentroMotion is an excellent opportunity
for Brake & Friction to optimize its long-term growth and
profitability, leveraging an industry leading platform focused on
critical applications for off-highway vehicle and industrial
markets.
“I had the privilege of serving as President of CBF from 2008 to
2011 and want to thank CBF’s approximately 1,350 global employees
for their perseverance over the past few years during a difficult
down cycle, all the while working to ensure CBF remained a leading
supplier of equipment and solutions to off-highway vehicle end
markets. In addition, I want to thank the customers and suppliers
of Brake & Friction for their continued loyalty.”
Guggenheim Securities, LLC acted as financial advisor to
Carlisle on this transaction.
Forward-Looking
Statements
This press release contains forward-looking statements,
including those with respect to the sale of CBF and the anticipated
timing of the closing of the transaction. These statements
represent only Carlisle’s current belief regarding future events,
many of which, by their nature, are inherently uncertain and
outside of Carlisle’s control. Actual results could differ
materially from those reflected in this press release for various
reasons, including the failure of the parties to meet or waive
closing conditions, the failure to receive required regulatory
approvals, and the failure of the buyers to obtain their expected
financing. Carlisle disclaims any obligation to update
forward-looking statements except as required by law.
About Carlisle Companies
Incorporated
Carlisle Companies Incorporated is a diversified industrial
company with a global portfolio of niche brands that delivers
energy efficient and highly engineered products and solutions for
its customers. Driven by our strategic plan, Vision 2025, Carlisle
is committed to generating superior shareholder returns by
investing in high-ROIC businesses and maintaining a balanced
capital deployment approach, including investments in our
businesses, strategic acquisitions, share repurchases and continued
dividend increases. Carlisle is headquartered in Scottsdale,
Arizona. Its worldwide team of employees generated $4.2 billion in
revenues in 2020. Learn more about Carlisle at
www.carlisle.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210525005238/en/
Jim Giannakouros, CFA Vice President of Investor Relations
Carlisle Companies Incorporated (480) 781-5135
jgiannakouros@carlisle.com
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