Carlisle Merges Business Sectors
February 11, 2010—
Carlisle Companies Inc. is combining its power transmission best business, which was discontinued in 2008, with its tire and wheel businesses. Carlisle Power Transmission manufactures belts and accessories for industrial power transmission applications with annual sales around $115 million.
In the second quarter of 2008, Carlisle PT moved to discontinue operations. "We announced plans to sell our power transmission belt business in April 2008," says David A. Roberts, chairman, president and CEO of Carlisle. "We were close to selling the business to a strategic buyer last year when our transaction was derailed by the financial crises.
"During our extended sales process, we also considered retaining the belt business, which has remained profitable, and combining it with one of our other businesses. Though we recently received and offer near book value, the decision was made to retain and combine the belt business with our tire and wheel business. These two businesses have similar manufacturing processes and share common customers."
Carlisle serves the on- and off-highway vehicle and equipment industries. It is evaluating the financial statement impact and estimates pre-tax charges of $6.7 million related to fixed-asset charges and plant restructuring costs in the fourth quarter 2009.