Published on 22 May 2024 on Zacks via Yahoo Finance
Carlisle (CSL) Divests Interconnect Technologies Business
Carlisle Companies Incorporated CSL recently completed the previously announced divestment of its Carlisle Interconnect Technologies (“CIT”) segment to Amphenol Corporation APH. The transaction was valued at $2.025 billion.Based in Wallingford, CT, Amphenol is a leading designer, manufacturer and marketer of electrical, electronic and fiber optic connectors primarily in the United States and China. Some of the notable products offered by the company are connectors and connector systems, busbars and power distribution systems, among others.Carlisle’s CIT segment is engaged in designing and manufacturing high-performance wire and cable, fiber optic cable, avionics trays, integrated systems as well as complex cable assemblies for applications in the aerospace industry. Also, it provides engineered products for the defense industry that include applications for radar systems, missiles and electronic warfare systems as well as test and measurement solutions.The divestment is in sync with CSL’s Vision 2030 strategy. This move will allow Carlisle to build a concentrated portfolio of construction materials businesses to accentuate its capital allocation approach to investments. Carlisle expects CIT to achieve long-term growth and profitability from this divestiture.It’s worth noting that the company divested its Fluid Technologies segment in October 2023 and the Brake & Friction segment in August 2021 as part of its portfolio enhancement strategy.
Zacks Rank & Price Performance
Carlisle, with a $20.3 billion market capitalization, currently sports a Zacks Rank #1 (Strong Buy). The company is poised to benefit from the growing popularity of reroofing products, solid repair and remodel demand across the building envelope in commercial and residential markets, and synergies from buyouts. Contribution from the Carlisle Operating System and effective pricing actions are other tailwinds.