Amphenol Corporation to buy Carlisle Interconnect for $2 billion

Amphenol Corporation, a global leader in high-tech interconnect, antenna and sensor solutions, has agreed to acquire Carlisle Interconnect Technologies (CIT), a major supplier of harsh environment interconnect solutions, for $2.025 billion in cash.

The deal, which is expected to close by the end of June 2024, will expand Amphenol’s product portfolio and customer base in the commercial air, defense and industrial markets. Carlisle Interconnect is projected to have $900 million in sales and 20% in adjusted EBITDA margin in 2024.

The acquisition will be financed with cash and existing credit facilities and will boost Amphenol’s earnings per share in the first year, excluding acquisition-related costs. The transaction is subject to regulatory approvals and other customary closing conditions.

“We are excited to welcome CIT’s approximately 6,000 talented employees to the Amphenol family,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt.

“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.

In addition, we are excited by the possibilities created through the combination of Amphenol’s strong operating discipline and CIT’s advanced capabilities. We look forward to working together with CIT’s experienced management team to drive superior operating performance for the business as part of Amphenol. The addition of CIT represents another step forward for our long-term and successful acquisition program, which we believe will continue to create value for the Company long into the future.”

Chris Koch, Chair, President and Chief Executive Officer Carlisle, said “The sale of Carlisle Interconnect Technologies 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.

As we complete this strategic shift, we look forward to executing our commitment in Vision 2030 to delivering over $40 of adjusted EPS through our innovative building envelope products and solutions. We are confident that our focus on building envelope solutions will allow our shareholders to benefit from mega trends around energy efficiency, labor savings and the re-roofing cycle and capitalize on the industry-leading returns provided by our streamlined portfolio.

The profitable growth and superior returns that we have demonstrated since 2018 are largely attributable to our strategic pivot and highly accretive capital allocation methodology. We are further strengthening our capital foundation with the expected proceeds from the sale of Carlisle Interconnect Technologies.

When combined with our 15%+ free cash flow margin expected to continue through 2024 and beyond, this heightened financial strength affords us substantial flexibility to effectively execute our share repurchase program, pursue strategic building product acquisitions and other high-returning capital allocation priorities.”

Evercore is serving as Amphenol’s financial advisor for the transaction and Latham & Watkins, LLP is acting as its legal advisor.

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