Pewaukee-based CentroMotion plans to acquire Carlisle Companies’ Brake & Friction business in a $375 million deal, the Arizona-based company announced today.
CBF manufactures brake and friction solutions for the off-highway vehicle markets, including construction, mining, agriculture and aerospace. Its products include hydraulic control productions, industrial brake assemblies and wet and dry friction materials for brake, clutch and transmission applications.
Carlisle’s friction and break business is based in Medina, Ohio, has approximately 1,350 employees and reported $275.3 million in revenue last year.
The transaction would provide Carlisle Companies with $250 million in cash at closing, subject to certain adjustments, and the potential to receive an additional post-closing cash payment of up to $125 million based on CBF’s performance for the calendar year 2021, according to a press release.
The measure will help Carlisle Companies Inc. simplify its portfolio and provide is shareholders with “better returns,” Carlisle Companies chairman, president and chief executive officer Chris Koch said in a statement.
The companies expect the deal to close in the third quarter of 2021 subject to regulatory approval.
“As we enter a post-COVID-19 world, this transaction also aligns with Carlisle’s pivot to focusing on expansion of our building products segment,” Koch said in a statement. “We believe the sale to CentroMotion is an excellent opportunity for Brake & Friction to optimize its long-term growth and profitability, leveraging an industry leading platform focused on critical applications for off-highway vehicle and industrial markets.”
CentroMotion provides motion, actuation and control solutions to the agriculture, specialty and commercial vehicle, construction and industrial markets. Its brands include CrossControl, Elliott, Gits, maximatecc, Power-Packer and Weasler Engineering.
The company was previously Enerpac Tool Group’s engineered components and systems segment before it was sold in 2019 to an affiliate of New York private equity firm One Rock Capital Partners LLC in a $214.5 million deal.
CentroMotion has about 2,200 employees across 13 manufacturing facilities and six centers of excellence sites, including Wisconsin plants in West Bend and Westfield. The company, which has about 400 employees in Wisconsin, last year announced plans to move its global headquarters to a 16,000 square-foot facility in Pewaukee.