CHARLOTTE, N.C. (Jan. 21, 2010) — Carlisle Companies Inc. has decided to retain its power transmission belt business — which had been for sale since early 2008 — and combine it with its tire and wheel business into a new division.
Carlisle expects integrating these two units — which have similar manufacturing processes and share common customers — to generate synergies that will allow it to achieve long-term goals, including improved operating margins, said David Roberts, chairman, president and CEO.
Springfield, Mo.-based Carlisle Power Transmission Products Inc., which makes power transmission belts and accessories primarily for industrial applications, generates annual sales of $115 million and was profitable last year, Carlisle said.
Mr. Roberts said Carlisle was close to selling the business last year when the financial crises derailed the sales process. Carlisle decided to retain the business at this time despite recently receiving a “near book value” offer.
Carlisle did not comment further on its restructuring.
Up to now Aiken, S.C.-based Carlisle Tire & Wheel Co. and trailer manufacturer Trail King Industries made up the firm's Transportation Products Group.
Carlisle said it is evaluating the financial statement impact of the move and estimates pre-tax charges of $6.7 million related to fixed-asset charges and plant restructuring costs in the fourth quarter of 2009.