CHARLOTTE, N.C. (Jan. 20, 2010)—Carlisle Companies Inc., after a potential sale of its power transmission belt busness fell through, has combined that operation with its tire and wheel unit.
The company had announced plans to sell the power transmission belt business in April 2008, and had a buyer lined up late last year. But the financial crisis derailed the deal, said President and CEO David A. Roberts.
The belt unit—which makes belts and accessories for industrial power transmission applications and has annual sales of about $115 million—remained profitable during the sales process, Carlisle said. Although an offer close to book value had been made, the firm decided to retain the business and combine it with the tire and wheel division.
The company said the two businesses share common customers and have similar manufacturing processes. Integrating the belt unit into the wheel and tire business will allow the company to achieve long-term goals including operating margin improvement, Carlisle said.
The firm expects to tax a pretax charge of $6.7 million on fourth quarter earnings related to fixed asset charges and plant restructuring costs resulting from its decision.