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Carlisle (CSL) Acquires Providien, Strengthens CIT Segment

Zacks Equity Research

Carlisle Companies Inc. CSL recently announced the buyout of Providien LLC. Notably, the company’s latest move is in sync with its Vision 2025 program, under which it seeks to pursue synergistic acquisitions to drive earnings per share. However, the terms of the deal were kept under wraps.

Based in San Diego, CA, Providien is engaged in offering a wide range of manufacturing solutions for global medical device OEMs. Some of the notable manufacturing solutions offered by the company include new product development, product life cycle management, supply chain management, thermoforming, precision machining & metals and medical injection molding. The company, which employs more than 1,000 personnel, has additional facilities in Sylmar, CA, Carlsbad, CA, and Tijuana, Mexico.

Carlisle will work on integrating Providien into its Carlisle Interconnect Technologies (“CIT”) segment. Notably, the company believes that the buyout will enhance CIT segment’s capabilities at the medical technologies platform, by enhancing its product portfolio for medical markets that includes drug delivery, oncology, robotics, as well as kyphoplasty.

Other Inorganic Moves

Carlisle intends to pursue growth and expansion of core business through acquisition of companies or assets. In this regard, the company’s buyout of Petersen Aluminum Corporation (January 2019) is worth mentioning. The acquisition has been strengthening its product offerings in the metal roofing platform. Further, the company’s buyout of Ecco Finishing (July 2019) has been boosting growth opportunities at Carlisle Fluid Technologies segment’s Sealants and Adhesives platform. Notably, acquisitions had a positive impact of 5.4% on the company’s third-quarter revenue growth.

In the past six months, this Zacks Rank #2 (Buy) company has gained 17.7%, outperforming the industry’s growth of 7.4%.



 

Other Stocks to Consider

Some other top-ranked stocks are Allegion plc ALLE, Macquarie Infrastructure Company MIC and ITT Inc. ITT. Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Allegion outpaced estimates thrice in the preceding four quarters, the average positive earnings surprise being 2.17%.

Macquarie surpassed estimates twice in the preceding four quarters, the average positive earnings surprise being 5.34%.

ITT exceeded estimates in each of the trailing four quarters, the average being 7.85%.

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Carlisle Companies Incorporated (CSL) : Free Stock Analysis Report
 
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