Carlisle Companies Incorporated has signed a definitive agreement to sell Carlisle Interconnect Technologies, known as CIT, to Amphenol Corporation. The transaction is valued at $2.025 billion and is subject to standard closing adjustments and regulatory clearances. The deal is expected to be completed by the end of the second quarter of 2024.
Chris Koch, who serves as Chair, President, and Chief Executive Officer of Carlisle, stated that the sale aligns with the company’s Vision 2030 strategy. He described the move as a milestone in shifting from a diversified industrial portfolio to a pure play building products company.
Koch noted that the company aims to deliver over $40 in adjusted earnings per share through its building envelope products and solutions.
The CEO expressed confidence that focusing on building envelope solutions would allow shareholders to benefit from trends in energy efficiency, labor savings, and the re-roofing cycle. He added that this focus would enable the company to capitalize on industry-leading returns from a streamlined portfolio.
Koch attributed the profitable growth and superior returns demonstrated since 2018 to the strategic pivot and the company’s capital allocation methodology. He stated that the expected proceeds from the CIT sale would strengthen the company’s capital foundation.
Combined with a free cash flow margin of over 15% expected to continue through 2024 and beyond, this financial strength provides flexibility for share repurchases and strategic acquisitions in the building products sector.
