Carlisle Cos Inc. (NYSE: CSL) has agreed to divest Carlisle Foodservice Products (CFS) to middle-market private equity frim the Jordan Co in order to focus on the seller’s “core businesses” despite foodservice being a “valuable asset.” The deal is expected to close in the first quarter of 2018, and valued at approximately $750 million in cash.
Carlisle manufactures products for the commercial roofing, agriculture, mining, construction, aerospace, defense, foodservice, healthcare, sanitary maintenance, transportation, industrial, protective coating and auto refinishing sectors. In 2017, the Scottsdale, Arizona-based seller reported more than $320 million in revenue for its CFS segment.
“The divestiture of FoodService is consistent with Carlisle’s vision of operating a portfolio of businesses with highly specialized, highly engineered manufactured products in strong growth markets,” states Carlisle CEO Christian Koch.
While we believe FoodService is a valuable asset with industry leading brands and a strong management team, the sale of CFS will allow Carlisle to focus on our core businesses, and result in a portfolio that is better aligned with our operating strengths.”
CFS, the division to be divested, focuses specifically on the restaurant, hospitality, healthcare and janitorial markets. CFS manufacturers an array of products, including: permanent ware supplies, table coverings, cookware, display ware, storage containers, catering and transport equipment, and meal delivery systems. In January 2017, the target completed an add-on deal acquiring food safety product maker San Jamar.
The Jordan Co. is a middle-market private equity firm based in New York and Chicago. Founded in 1982, the firm manages more than $8 billion in assets. The Jordan Co. previously acquired DuBois Chemicals Inc., a chemical producer for the manufacturing industry, from Aurora Capital Group in March 2016. American Fast Freight and Capstone Logistics are two other logistics providers backed by the PE firm. In July 2016, American Fast Freight acquired Global Transportation Services Inc. to expand beyond the company’s core markets and into the ocean freight sector.