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Carlisle (CSL) to Divest Carlisle Fluid Technologies Segment

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Carlisle Companies Incorporated (CSL - Free Report) has entered into an agreement to divest its Carlisle Fluid Technologies (“CFT”) segment to an associate of Lone Star Funds. The deal is valued at $520 million.

Established in 1995, Lone Star Funds is a private equity firm. Based in Texas, Lone Star operates around the world. The company provides consultation to funds investing in equity, real estate, credit and operating companies.

CFT is engaged in producing highly engineered liquid, powder, sealants and adhesives finishing equipment and integrated system solutions for spraying, pumping, mixing, metering and curing of a variety of coatings for the automotive manufacture, general industrial, protective coating, wood, specialty and automotive refinishing markets. In 2022, the segment generated revenues of $297 million, accounting for 4.6% of total CSL revenues. It currently employs 825 people.

The divestment is in sync with CSL’s Vision 2025 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 CFT to achieve long-term growth and profitability from this divestiture.

The deal is likely to close in the third quarter of 2023, subject to certain regulatory approvals and other customary closing conditions. In August 2021, the company divested the Carlisle Brake & Friction segment as part of its portfolio enhancement strategy.

The Zacks Consensus Estimate for Carlisle Companies’ 2023 earnings per share is currently pegged at $18.36, suggesting an 8.3% decrease from the year-ago reported figure. The same for 2024 stands at $20.66, indicating growth of 3.3% from the prior-year reported number.

Price Performance

Shares of CSL have gained 2% against the industry’s 4.1% decline in the year-to-date period.

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Zacks Rank & Stocks to Consider

CSL currently carries Zacks Rank #4 (Sell). Some better-ranked stocks are discussed below:

Griffon Corporation (GFF - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks.

GFF delivered a trailing four-quarter earnings surprise of 7.7%, on average. In the past 60 days, Griffon’s earnings estimates have increased 10.4% for fiscal 2023. The stock has surged 4.6% in the year-to-date period.

Ingersoll Rand Inc. (IR - Free Report) presently sports a Zacks Rank of 1. IR delivered a trailing four-quarter earnings surprise of 12.6%, on average.

In the past 60 days, estimates for Ingersoll Rand’s 2023 earnings have increased 7.5%. The stock has improved 23.8% in the year-to-date period.

Alamo Group Inc. (ALG - Free Report) currently sports a Zacks Rank of 1. ALG delivered a trailing four-quarter earnings surprise of 17.7%, on average.

In the past 60 days, estimates for Alamo’s 2023 earnings have increased 12.7%. The stock has gained 29.7% in the year-to-date period.

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