Carlisle Companies to buy Hawk Corp for $413 million
16 Oct 2010
Diversified manufacturer Carlisle Companies Inc today said that it will buy Hawk Corp, a supplier of friction products, for $413 million in cash to gain exposure in emerging markets.
Cleveland, Ohio-based Hawk is a leading supplier of friction products for brakes, clutches and transmissions used in airplanes, trucks, construction and mining equipment, farm equipment, and recreational and performance automotive vehicles.
The company's friction products include parts for brakes, clutches, and transmissions used in construction and mining vehicles, agricultural vehicles, trucks, motorcycles, and race cars; and brake parts for landing gears.
Hawk has seen revenues fall from $269.6 million in 2008 to $172.4 million last year and net income from $20.8 million to $6.4 million.
Charlotte, North Carolina-based Carlisle will pay $50.00 per share in cash, representing an equity value of approximately $413 million and an enterprise value of approximately $410 million.
Carlisle hopes the merger will create a comprehensive global braking solutions platform and enable it to provide a broader line of attractive products and increasing exposure to key emerging markets such as China, Brazil and India.