Carlisle Selling Tire Division
Carlisle Co. said that a New York company is buying its tire division in a $375 million deal. American Industrial Partners is expected to pay cash for the company’s transportation products segment, Carlisle said. The deal still needs regulatory approval and is expected to close by the end of the year.
Carlisle announced that it was seeking a buyer for the segment in July. The company said that competition from China has made it hard to remain profitable in lawn and garden tractor and other outdoor power equipment tires.
In a statement, David Roberts, Carlisle president and CEO, described the segment as “not core to Carlisle’s growth strategy nor supportive of our long-term operating profit goals and expectations.” He said the sale will help Carlisle invest in faster-growing businesses with higher profit margins.
In 2012, the transportation products segment had sales of $778 million and a profit margin of 6.7%, down from 9.4% in 2003 and below the double-digit margins the company’s other segments produced last year.
Established in 1917 in Carlisle, Pa., Carlisle has its roots in selling inner tubes for automobiles, but it has grown into other lines of business since then.
It will have four remaining segments after the sale, including brake and friction systems used mostly by the mining, construction and agricultural industries.