Carlisle Acquires Consumer Tire & Wheel Business Unit from TWI.Business Editors SYRACUSE, N.Y.--(BUSINESS WIRE)--April 17, 2000 Carlisle Companies Incorporated (NYSE NYSE See: New York Stock Exchange :CSL (Computerese as a Second Language) Said of people who love to speak high-tech words even though they often use them erroneously. See TLA. 1. CSL - Computer Structure Language. A computer hardware description language, written in BCPL. ) announced today that its Carlisle Tire & Wheel subsidiary has acquired the consumer tire and wheel business of Titan International (NYSE: TWI Twi n. A variety of the Akan language spoken in Ghana. ) in a cash for assets transaction valued at a formula based price not to exceed $95.0 million. The acquired business serves consumer markets for lawn & garden equipment, all terrain vehicles and light duty trailers. The business has been profitably conducted from manufacturing locations in Clinton, TN; Slinger, WI and Greenwood, SC. The transaction includes the purchase of the Clinton and Slinger plants and leasing of the Greenwood plant. Carlisle Tire and Wheel Company is a market leader in the supply of tires and wheels to lawn and garden, golf, leisure equipment trailers and other specialty markets manufactured at plants in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and Asia. In addition to important new customers the acquisition provides needed manufacturing capacity, state of the art wheel painting technology and expansion into tire sizes larger than currently produced by Carlisle. Significant cost synergies Cost Synergy In the context of mergers, cost synergy is the savings in operating costs expected after two companies, who compliment each other's strengths, join. Notes: The savings in operating costs usually come in the form of laying off employees. are expected through the addition of the purchased plants to the existing Carlisle plants. This transaction is expected to contribute to Carlisle earnings in 2000. Barry Littrell, President of Carlisle Tire and Wheel said "This acquisition enhances our ability to serve our customers with the broadest range of products available in our key market segments and expands our market leadership. We can provide our OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and and aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. customers with the optimal balance of value and just-in-time supply from cost effective domestic and international plant locations. We are excited about the growth opportunities afforded by this extension of our reach into attractive market niches." In September, 1999 Carlisle Companies Incorporated and Titan International terminated discussions for the acquisition of Titan International, which included tires, and wheels for agricultural, construction and industrial markets in addition to the products included in this transaction. 1999 sales of products covered by this transaction exceeded $100 million. Carlisle is a diversified manufacturer of products serving four major markets: construction materials, industrial components, automotive components and general industry. Titan International is a manufacturer of wheel and tire assemblies serving the agricultural, construction and consumer markets. |
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