Amphenol Corporation Completes Acquisition of CIT Business From Carlisle
Amphenol (NYSE: APH) has finalized the acquisition of the Carlisle Interconnect Technologies (CIT) business from Carlisle Companies Incorporated (NYSE: CSL). This acquisition aims to enhance Amphenol's offerings in engineered interconnect solutions for harsh environments, targeting commercial air, defense, and industrial markets. The CIT business is projected to contribute $900 million in sales and a 20% adjusted EBITDA margin for the full year 2024. Additionally, the acquisition is expected to increase Amphenol's 2024 earnings per share by approximately $0.02, excluding acquisition-related costs. This figure will adjust to $0.01 per share following the company's recently announced 2-for-1 stock split.
- Acquisition enhances Amphenol’s product offerings in harsh environment interconnect solutions.
- Projected full-year 2024 sales for CIT business: $900 million.
- Expected 20% adjusted EBITDA margin for CIT business in 2024.
- Acquisition to be approximately $0.02 accretive to 2024 earnings per share, excluding acquisition-related expenses.
- 2-for-1 stock split to further adjust earnings per share accretion to $0.01 in 2024.
- Addition of talented CIT employees expected to boost operational performance.
- Potential acquisition-related expenses not factored into the accretion estimate.
- Integration risks of a new business unit that might impact operating performance.
Insights
The acquisition of CIT by Amphenol Corporation is a strategically significant move that could have a meaningful impact on the company's financial performance. The acquisition is projected to generate
In the short term, the acquisition is likely to result in some integration costs and potential disruptions. However, the longer-term benefits may outweigh these initial challenges. The addition of CIT broadens Amphenol's portfolio in harsh environment interconnect solutions, a key growth area, thereby reinforcing its market position in the commercial air, defense and industrial sectors.
Moreover, the EBITDA margin of
Amphenol's acquisition of CIT from Carlisle Companies is a strategic alignment that expands its product offerings and market reach. With CIT's specialization in harsh environment interconnect solutions, Amphenol can leverage synergies to enhance its presence in the commercial air, defense and industrial markets. This diversification is critical in reducing dependency on any single market segment and enhancing resilience against market fluctuations.
The projected sales of
Investors should note that this acquisition not only strengthens Amphenol's market position but also opens up opportunities for cross-selling and innovation through combined expertise. However, it's essential to monitor how well Amphenol integrates CIT's operations and retains its customer base.
“The acquisition of CIT enhances Amphenol’s product offerings for highly engineered harsh environment interconnect solutions and will enable us to deliver a more comprehensive technology offering for our customers in the commercial air, defense and industrial markets,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt. “We are excited to welcome CIT’s talented employees to the Amphenol family and look forward to working together with them to drive outstanding operating performance.”
As previously announced, the CIT business is expected to have full-year 2024 sales and adjusted EBITDA margin of approximately
About Amphenol
Amphenol Corporation is one of the world’s largest designers, manufacturers and marketers of electrical, electronic and fiber optic connectors and interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable. Amphenol designs, manufactures and assembles its products at facilities in approximately 40 countries around the world and sells its products through its own global sales force, independent representatives and a global network of electronics distributors. Amphenol has a diversified presence as a leader in high-growth areas of the interconnect market including: Automotive, Broadband Communications, Commercial Aerospace, Defense, Industrial, Information Technology and Data Communications, Mobile Devices and Mobile Networks. For more information, visit www.amphenol.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may contain words and terms such as: “anticipate,” “could,” “believe,” “continue,” “expect,” “estimate,” “forecast,” “ongoing,” “project,” “seek,” “predict,” “target,” “will,” “intend,” “plan,” “look ahead,” “optimistic,” “potential,” “guidance,” “may,” “should,” or “would” and other words and terms of similar meaning. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about expected 2024 CIT sales and adjusted EBITDA margin as well as expected 2024 accretion related to the CIT acquisition. These statements are only predictions, and such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations. No forward-looking statement can be guaranteed. Risks and uncertainties include, but are not limited to, unanticipated difficulties relating to the CIT acquisition, the response of business partners and competitors to the announcement of the closing of the transaction, potential disruptions to current plans and operations and/or potential difficulties in employee retention as a result of the closing of the CIT transaction. The foregoing list of risk factors is not exhaustive. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect Amphenol’s business, particularly those identified in the risk factor discussion in Amphenol’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as other documents that may be filed by Amphenol with the SEC. Amphenol does not undertake any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. The forward-looking statements made in this communication relate only to events as of the date on which the statements are made.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240521503933/en/
Sherri Scribner
Vice President, Strategy and Investor Relations
203-265-8820
IR@amphenol.com
Source: Amphenol Corporation
FAQ
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How does the acquisition of CIT benefit Amphenol's product offerings?
