UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 


 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities and Exchange Act of 1934

 

Date of Report (Date of earliest event reported) December 31, 2013

 

CARLISLE COMPANIES INCORPORATED

(Exact name of registrant as specified in its charter)

 

Delaware

 

1-9278

 

31-1168055

(State or other jurisdiction

 

(Commission

 

(IRS Employer

of incorporation)

 

File Number)

 

Identification No.)

 

11605 North Community House Road, Suite 600, Charlotte, NC 28277

(Address of principal executive offices)

 

704-501-1100

(Registrant’s telephone number)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFS 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

INFORMATION TO BE INCLUDED IN THE REPORT

 

Item 2.01                   Completion of Acquisition or Disposition of Assets.

 

On December 31, 2013, Carlisle Companies Incorporated, a Delaware corporation (the “Company”), and certain of the Company’s wholly-owned indirect subsidiaries (the “Affiliates”) completed the previously announced series of definitive agreements (the “Sale Agreement”) to sell its Transportation Products Business to CTP Transportation Products, LLC, a Delaware limited liability company affiliated with American Industrial Partners (“Buyer”) for aggregate cash consideration of $372.9 million, net of customary adjustments.  The final purchase price is subject to a net working capital adjustment to be settled within 60 days of the closing date.  Target Net Working Capital, as defined in the Sale Agreement, is $205.0 million.

 

Item 7.01.                Regulation FD Disclosure.

 

On December 31, 2013, the Company announced that it had completed the previously announced series of definitive agreements to sell its Transportation Products Business to American Industrial Partners for aggregate cash consideration of $375 million, subject to certain adjustments.  A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information in this Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, is being furnished herewith and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

 

Item 9.01.                Financial Statements and Exhibits

 

(b)   Pro forma financial information

 

The accompanying Unaudited Pro Forma Condensed Consolidated Statements of Operations or the nine months ended September 30, 2013 and 2012, and for the years ended December 31, 2012, 2011 and 2010 reflect the disposition of the Transportation Products Business (the “Transaction”), as described in Item 2.01 above, as if it had occurred on January 1, 2010. The accompanying Unaudited Pro Forma Condensed

 

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Consolidated Balance Sheet as of September 30, 2013 reflects the Transaction as if it had occurred on September 30, 2013.

 

The accompanying unaudited pro forma condensed consolidated financial statements have been derived primarily from and should be read in conjunction with the Company’s audited consolidated financial statements as of December 31, 2012, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 as well as the unaudited condensed consolidated financial statements as of September 30, 2013, including the notes thereto, included in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013.  The unaudited pro forma condensed consolidated financial statements are based upon available information and assumptions that the Company believes are reasonable under the circumstances and have been prepared to illustrate the estimated effects of the Transaction, if the Transaction occurred as of and on the dates specified above.

 

The accompanying unaudited pro forma condensed consolidated financial statements are provided for informational purposes only and are not necessarily indicative of the consolidated financial position or results of operations of the Company that would have been reported had the Transaction been completed at the dates indicated nor are they indicative of the Company’s future consolidated financial position or results of operations. Amounts reported in future financial statements with the Securities and Exchange Commission for the periods presented herein could differ from these pro forma condensed consolidated financial statements.

 

2



 

Carlisle Companies Incorporated

Unaudited Pro Forma Condensed Consolidated Statement of Earnings

For the Nine Months Ended September 30, 2013

 

(in millions except share amounts)

 

As Reported(a)

 

Adjustmets
Resulting from
Disposal of
CTP(b)

 

Pro Forma

 

Net sales

 

$

2,821.9

 

$

(602.9

)

$

2,219.0

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

2,159.3

 

(500.1

)

1,659.2

 

Selling and administrative expenses

 

321.2

 

(55.7

)

265.1

 

 

 

 

 

(0.4

)(c)

 

 

Research and development expenses

 

27.4

 

(5.6

)

21.8

 

Impairment of assets

 

100.0

 

(100.0

)

 

Other (income) expense, net

 

(2.0

)

0.1

 

(1.9

)

 

 

 

 

 

 

 

 

Earnings before interest and income taxes

 

216.0

 

58.8

 

274.8

 

 

 

 

 

 

 

 

 

Interest expense, net

 

25.4

 

 

25.4

 

Earnings before income taxes from continuing operations

 

190.6

 

58.8

 

249.4

 

 

 

 

 

 

 

 

 

Income tax expense

 

50.5

 

24.3

(d)

74.8

 

Income from continuing operations

 

$

140.1

 

$

34.5

 

$

174.6

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations

 

 

 

 

 

 

 

Basic

 

$

2.19

 

$

0.54

 

$

2.73

 

Diluted

 

2.16

 

0.54

 

2.70

 

 

 

 

 

 

 

 

 

Average shares outstanding - in thousands

 

 

 

 

 

 

 

Basic

 

63,429

 

 

 

63,429

 

Diluted

 

64,714

 

 

 

64,714

 

 

See accompanying notes to these Unaudited Pro Forma Condensed Consolidated Financial Statements

 

3



 

Carlisle Companies Incorporated

Unaudited Pro Forma Condensed Consolidated Statement of Earnings

For the Nine Months Ended September 30, 2012

 

(in millions except share amounts)

 

As Reported(a)

 

Adjustmets
Resulting from
Disposal of
CTP(b)

 

Pro Forma

 

Net sales

 

$

2,783.8

 

$

(616.3

)

$

2,167.5

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

2,091.2

 

(511.2

)

1,580.0

 

Selling and administrative expenses

 

314.6

 

(53.3

)

261.3

 

Research and development expenses

 

24.4

 

(5.2

)

19.2

 

Impairment of assets

 

 

 

 

Other (income) expense, net

 

6.5

 

(0.3

)

6.2

 

 

 

 

 

 

 

 

 

Earnings before interest and income taxes

 

347.1

 

(46.3

)

300.8

 

 

 

 

 

 

 

 

 

Interest expense, net

 

19.2

 

 

19.2

 

Earnings before income taxes from continuing operations

 

327.9

 

(46.3

)

281.6

 

 

 

 

 

 

 

 

 

Income tax expense

 

108.7

 

(14.0

)(d)

94.7

 

Income from continuing operations

 

$

219.2

 

$

(32.3

)

$

186.9

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations

 

 

 

 

 

 

 

Basic

 

$

3.50

 

$

(0.52

)

$

2.98

 

Diluted

 

3.43

 

(0.51

)

2.92

 

 

 

 

 

 

 

 

 

Average shares outstanding - in thousands

 

 

 

 

 

 

 

Basic

 

62,347

 

 

 

62,347

 

Diluted

 

63,520

 

 

 

63,520

 

 

See accompanying notes to these Unaudited Pro Forma Condensed Consolidated Financial Statements

 

4



 

Carlisle Companies Incorporated

Unaudited Pro Forma Condensed Consolidated Statement of Earnings

For the Year Ended December 31, 2012

 

(in millions except share amounts)

 

As Reported(e)

 

Adjustmets
Resulting from
Disposal of
CTP(b)

 

Pro Forma

 

Net sales

 

$

3,629.4

 

$

(778.2

)

$

2,851.2

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

2,731.7

 

(650.7

)

2,081.0

 

Selling and administrative expenses

 

427.7

 

(71.0

)

356.7

 

Research and development expenses

 

33.0

 

(6.8

)

26.2

 

Impairment of assets

 

 

 

 

Other (income) expense, net

 

12.7

 

(0.4

)

12.3

 

 

 

 

 

 

 

 

 

Earnings before interest and income taxes

 

424.3

 

(49.3

)

375.0

 

 

 

 

 

 

 

 

 

Interest expense, net

 

25.5

 

 

25.5

 

Earnings before income taxes from continuing operations

 

398.8

 

(49.3

)

349.5

 

 

 

 

 

 

 

 

 

Income tax expense

 

131.5

 

(15.5

)(d)

116.0

 

Income from continuing operations

 

$

267.3

 

$

(33.8

)

$

233.5

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations

 

 

 

 

 

 

 

Basic

 

$

4.25

 

$

(0.54

)

$

3.71

 

Diluted

 

4.18

 

(0.53

)

3.65

 

 

 

 

 

 

 

 

 

Average shares outstanding - in thousands

 

 

 

 

 

 

 

Basic

 

62,513

 

 

 

62,513

 

Diluted

 

63,610

 

 

 

63,610

 

 

See accompanying notes to these Unaudited Pro Forma Condensed Consolidated Financial Statements

 

5



 

Carlisle Companies Incorporated

Unaudited Pro Forma Condensed Consolidated Statement of Earnings

For the Year Ended December 31, 2011

 

(in millions except share amounts)

 

As Reported(e)

 

Adjustmets
Resulting from
Disposal of
CTP(b)

 

Pro Forma

 

Net sales

 

$

3,224.5

 

$

(732.1

)

$

2,492.4

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

2,547.4

 

(639.1

)

1,908.3

 

Selling and administrative expenses

 

376.6

 

(77.8

)

298.8

 

Research and development expenses

 

28.7

 

(7.0

)

21.7

 

Impairment of assets

 

 

 

 

Other (income) expense, net

 

(3.3

)

0.9

 

(2.4

)

 

 

 

 

 

 

 

 

Earnings before interest and income taxes

 

275.1

 

(9.1

)

266.0

 

 

 

 

 

 

 

 

 

Interest expense, net

 

21.2

 

 

21.2

 

Earnings before income taxes from continuing operations

 

253.9

 

(9.1

)

244.8

 

 

 

 

 

 

 

 

 

Income tax expense

 

72.0

 

(0.9

)(d)

71.1

 

Income from continuing operations

 

$

181.9

 

$

(8.2

)

$

173.7

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations

 

 

 

 

 

 

 

Basic

 

$

2.93

 

$

(0.13

)

$

2.80

 

Diluted

 

2.88

 

(0.13

)

2.75

 

 

 

 

 

 

 

 

 

Average shares outstanding - in thousands

 

 

 

 

 

 

 

Basic

 

61,457

 

 

 

61,457

 

Diluted

 

62,495

 

 

 

62,495

 

 

See accompanying notes to these Unaudited Pro Forma Condensed Consolidated Financial Statements

 

6



 

Carlisle Companies Incorporated

Unaudited Pro Forma Condensed Consolidated Statement of Earnings

For the Year Ended December 31, 2010

 

(in millions except share amounts)

 

As Reported(e)

 

Adjustmets
Resulting from
Disposal of
CTP(b)

 

Pro Forma

 

Net sales

 

$

2,527.7

 

$

(684.8

)

$

1,842.9

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

1,999.0

 

(591.8

)

1,407.2

 

Selling and administrative expenses

 

310.5

 

(65.8

)

244.7

 

Research and development expenses

 

23.2

 

(6.8

)

16.4

 

Impairment of assets

 

 

 

 

Other (income) expense, net

 

(1.1

)

0.4

 

(0.7

)

 

 

 

 

 

 

 

 

Earnings before interest and income taxes

 

196.1

 

(20.8

)

175.3

 

 

 

 

 

 

 

 

 

Interest expense, net

 

8.3

 

 

8.3

 

Earnings before income taxes from continuing operations

 

187.8

 

(20.8

)

167.0

 

 

 

 

 

 

 

 

 

Income tax expense

 

57.2

 

(3.0

)(d)

54.2

 

Income from continuing operations

 

$

130.6

 

$

(17.8

)

$

112.8

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations

 

 

 

 

 

 

 

Basic

 

$

2.12

 

$

(0.29

)

$

1.83

 

Diluted

 

2.10

 

(0.29

)

1.81

 

 

 

 

 

 

 

 

 

Average shares outstanding - in thousands

 

 

 

 

 

 

 

Basic

 

60,901

 

 

 

60,901

 

Diluted

 

61,592

 

 

 

61,592

 

 

See accompanying notes to these Unaudited Pro Forma Condensed Consolidated Financial Statements

 

7



 

Carlisle Companies Incorporated

Unaudited Pro Forma Condensed Consolidated Balance Sheet

As of September 30, 2013

 

(in millions except share amounts)

 

As Reported(a)

 

Adjustments
Resulting from
Disposal of CTP

 

Pro Forma

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

332.4

 

$

372.9

(f)

$

685.8

 

 

 

 

 

(19.5

)(f)

 

 

Receivables, net

 

572.3

 

(84.1

)(g)

488.2

 

Inventories

 

481.3

 

(181.5

)(g)

299.8

 

Deferred income taxes

 

41.8

 

(0.5

)(g)

36.1

 

 

 

 

 

(5.2

)(h)

 

 

Prepaid expenses and other current assets

 

34.3

 

(3.9

)(g)

30.4

 

Total current assets

 

1,462.1

 

78.2

 

1,540.3

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

645.3

 

(162.2

)(g)

483.1

 

 

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

 

 

Goodwill, net

 

859.6

 

(g)

859.6

 

Other intangible assets, net

 

590.4

 

(2.7

)(g)

587.7

 

Other long-term assets

 

35.3

 

(0.2

)(g)

35.0

 

 

 

 

 

(0.1

)(h)

 

 

Non-current assets held for sale

 

4.2

 

(g)

4.2

 

Total other assets

 

1,489.5

 

(3.0

)

1,486.5

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

3,596.9

 

$

(87.0

)

$

3,509.9

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Short-term debt, including current maturities

 

$

 

$

(g)

$

 

Accounts payable

 

274.3

 

(63.6

)(g)

210.7

 

Accrued expenses

 

224.2

 

(21.0

)(g)

206.7

 

 

 

 

 

(1.4

)(i)

 

 

 

 

 

 

4.9

(j)

 

 

Deferred revenue

 

17.1

 

(g)

17.1

 

Total current liabilities

 

515.6

 

(81.1

)

434.5

 

 

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

 

 

Long-term debt

 

752.6

 

(0.1

)(g)

752.5

 

Deferred revenue

 

140.7

 

(g)

140.7

 

Other long-term liabilities

 

264.4

 

(1.3

)(g)

250.0

 

 

 

 

 

(13.1

)(h)

 

 

Total long-term liabilities

 

1,157.7

 

(14.5

)

1,143.2

 

 

 

 

 

 

 

 

 

Total shareholders’ equity

 

1,923.6

 

8.6

(k)

1,932.2

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

3,596.9

 

$

(87.0

)

$

3,509.9

 

 

See accompanying notes to these Unaudited Pro Forma Condensed Consolidated Financial Statements

 

8



 

NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 


(a)         Condensed Consolidated Statements of Earnings and Condensed Consolidated Balance Sheet, as applicable, included in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 for the respective periods presented.

 

(b)         Excludes corporate costs historically allocated to the Transportation Products segment which will be reallocated to other segments or will remain at corporate in historical and future financial statements.

 

(c)          Costs incurred by the Company to complete the Transaction.

 

(d)         Tax effects of pro forma adjustments to the Condensed Consolidated Statements of Earnings are based on the respective statutory tax rates in the jurisdictions in which the Transportation Products Business operated, primarily in the United States at 35% for all periods and in China at 25% for 2012 and 12.5% for 2011 and 2010, in effect during the respective periods.

 

(e)          Condensed Consolidated Statements of Earnings derived from the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 for the respective periods presented.

 

(f)           Total cash proceeds from the Transaction were $372.9 million, net of customary adjustments.  The final purchase price is subject to a net working capital adjustment to be settled within 60 days of the closing date.  Target Net Working Capital, as defined in the Sale Agreement, is $205.0 million.  As of September 30, 2013, the working capital adjustment is expected to result in a $19.5 million reduction in proceeds.

 

(g)          Amounts reflect the assets to be acquired and the liabilities to be assumed by the Buyer in the Transaction, including certain deferred tax assets and liabilities associated with entities within the Transportation Products Business in China and The Netherlands.

 

(h)         Certain amounts historically reported for deferred taxes associated with entities within the Transportation Products Business in the United States and Canada as of September 30, 2013 have been reclassified to current taxes payable to reflect the estimated tax liability due as if the Transaction were consummated on that date.

 

(i)             Estimated current taxes payable as if the Transaction were consummated on September 30, 2013.

 

(j)            Estimated transaction fees remaining to be incurred by the Company as of September 30, 2013.

 

9



 

(k)         Reflects the estimated net increase in shareholders’ equity, net of estimated taxes and transaction fees.  In addition to the $3.2 million estimated gain on sale, the Transaction includes 1) an $8.5 million increase to accumulated other comprehensive income for partial settlement and curtailment of pension obligation related to plan participants employed by the Transportation Products Business, 2) a $5.3 million decrease to accumulated other comprehensive income for disposition of cumulative translation adjustment, and 3) a $2.2 million increase in additional paid-in capital for modification of equity awards granted to employees of the Transportation Products Business. The actual gain on sale of the Transportation Products Business is subject to a net working capital adjustment to be settled within 60 days of the closing date.

 

(d)                                 Exhibits

 

See Exhibit Index attached hereto.

 

10



 

SIGNATURES

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

Dated: January 7, 2014

 

CARLISLE COMPANIES INCORPORATED

 

 

 

 

 

 

 

By:

/s/ Steven J. Ford

 

 

Steven J. Ford, Vice President
and Chief Financial Officer

 

11



 

EXHIBIT INDEX

 

Exhibit

 

 

Number

 

Description

 

 

 

99.1

 

Press release of Carlisle Companies Incorporated, dated December 31, 2013.

 

12