Pivoting to a ‘pure play’ building products firm Carlisle Companies has inked a definitive agreement to sell its Carlisle Interconnect Technologies (CIT) unit to Amphenol Corporation for $2 billion. It expects the deal to close by the end of the second quarter, subject to certain closing adjustments and conditions, including regulatory clearances.
“The sale of CIT aligns with our Vision 2030 strategy and represents a significant milestone in our strategic pivot from a diversified industrial portfolio of businesses to a premier pure play building products company,” Carlisle Companies chair, president and CEO Chris Koch said in a statement.
Headquartered in Wallingford, Connecticut, Amphenol supplies advanced interconnect systems, sensors and antennas across various markets including aerospace. It sees St. Augustine, Florida-based CIT’s wide range of wires, cables, connectors and sensors as being “highly complementary” to its existing portfolio.
In commercial aviation, CIT’s products include seat cabling, fiber optic assemblies, equipment racks, large antenna structures, leaky line assemblies, cabin Wi-Fi components, and equipment enclosures. The company has strong content placement on Airbus and Boeing aircraft, and is involved in a lot of retrofit work as a key integrator of inflight entertainment and connectivity systems to aircraft.
For example, a CIT adapter plate, skirt and radome, plus associated power supply, connecting cables and installation kit are part of the ThinKom Solutions Ka1717 VICTS terminal for regional jets, which was recently selected by Hughes Network Systems to support the latter company’s major new IFC contract with Delta Air Lines. Last year, CIT told RGN that it expects its engineering and supplemental type certification (STC) work for inflight connectivity to return to pre-Covid volumes this year, as airlines increasingly adopt next-generation antenna systems such as VICTS and electronically steered antennas.
“We are excited to welcome CIT’s approximately 6,000 talented employees to the Amphenol family,” said Amphenol president and CEO R. Adam Norwitt in a statement early this year. “CIT’s highly engineered harsh environment interconnect solutions will allow us to deliver a more comprehensive technology solution for the increasingly complex applications of our customers in harsh environment markets. We look forward to benefiting from this enhanced position with these important customers in the commercial air, defense and industrial markets long into the future.”
According to Amphenol, CIT expects to have 2024 sales and adjusted EBITDA margin of approximately $900 million and 20%, respectively. “Assuming a continuation of current economic conditions, CIT is expected to be accretive to Amphenol’s earnings per share in the first year post closing, excluding acquisition-related costs,” it said.
The acquisition of CIT is being financed through a combination of cash on hand as well as Amphenol‘s existing credit and commercial paper facilities.
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Featured image credited to Becca Alkema
