Carr’s of Carlisle sells £75m engineering division

Carlisle-based agriculture and engineering firm Carr’s Group said it agreed to dispose of its interests in Carr’s Engineering Limited and Carr’s Engineering (US), Inc. to Jacksonville, Florida-based Cadre Holdings, Inc. for an enterprise value of £75 million.

The sale of the engineering division excludes Chirton Engineering, which is subject to a separate sale process .

Carr’s intends to return up to £70 million of the net proceeds to shareholders by way of a tender offer, with any remaining proceeds expected to be used for general corporate purposes.

“The transaction simplifies the group’s structure and enables the Continuing Group to concentrate future investments and allocate resources more effectively to the Agriculture Division, supported by the recently launched focussed strategy under a single management team …” said Carr’s.

Carr’s chairman Tim Jones said: “This is a transformative moment for Carr’s and one which we expect to deliver real value to all shareholders.

“The Agriculture business is particularly well-positioned for growth, with strong product offerings, strategic market presence and a clear focus on delivering ongoing shareholder value.”

Carr’s CEO David White said: “I am delighted that we have been able to execute this critical step in our strategy, one which leaves us able to focus on the global opportunities for our Agriculture business.

“Our specialist product portfolio provides a strong base for profitable growth in both existing and new markets.

“The hard work of all colleagues across the Engineering Division has been key to the success of the Group in recent years and I wish them the very best for the future.”

Cadre is a provider of safety and survivability products for first responders, federal agencies, and outdoor/personal protection markets. Cadre is a public company on the New York Stock Exchange with corporate offices in Jacksonville, Florida.