Carlisle Cos. Inc. has sold its $200 million automotive unit to an Akron, Ohio, private-equity group that specializes in backing mid-sized manufacturing companies.
The transaction virtually takes Carlisle out of the auto industry.
Terms were not disclosed.
Carlisle, of Charlotte, N.C., sold Carlisle Engineered Products to Reserve Group. The deal, announced Aug. 17, does not include the assets from Carlisle's Grand Rapids, Mich., and Lake City, Pa., plants.
The purchase marks the single biggest acquisition in automotive plastics for Reserve Group.
"Our plans are to continue to grow (the Carlisle business) with acquisitions and internal growth," says Anthony Murru, Reserve Group's acquisition manager.
The unit will receive a new name, Murru said. He would not comment on whether the new owners will bring in new managers.
Carlisle announced in January that it was seeking a buyer for its automotive group. Carlisle Engineered Products, which has its headquarters in Crestline, Ohio, molds a variety of automotive components, including interior and exterior trim.
Reserve Group already owned 10 manufacturing companies, including plastics injection-molder Romeo Rim Inc., of Romeo, Mich., which makes parts for commercial trucks and agricultural equipment.
The equity firm seeks companies ranging in size from $25 million to $500 million in revenue, especially those with proprietary products and an international presence.
Carlisle's auto group has injection-molding, extrusion and blow-molding operations in Michigan, Ohio and Alabama, two plants in Mexico and a joint venture in England.
Carlisle, which said it will post an after-tax loss of about $9 million after the sale, is exiting the automotive sector because it wants to focus on its core operations, said CEO Richmond McKinnish in the prepared statement.
The deal should boost Reserve Group's sales by a third, Murru said, although he did not say what the company's overall revenues were annually.
Reserve Group was formed in 1995 and has been acquiring businesses steadily. It deals primarily in metal-forming operations but has a presence in the rubber and plastics markets.
Mike McNulty of Rubber & Plastics News contributed to this report