CHARLOTTE, N.C. — Carlisle Companies says that its subsidiary Motion Control Industries will exit the on-highway friction and brake shoe business.
"Due to the current market conditions, and our desire to minimize any future negative cash flow impact from this operation, we have decided to dispose of the assets of the on-highway friction and brake shoe business," said David A. Roberts, chairman, president and CEO. "During the first quarter of 2008, we had placed this operation, along with our power transmission belt business, into discontinued operations."
Carlisle will dispose of the assets associated with this business as part of a planned dissolution.
The company announced nearly a year ago that it had decided to dispose of its on-highway brake, and its power transmission belt businesses. Last November, a proposed deal to sell Motion Control to Stemco fell through a week after an agreement in principle was reached.
In a press release, Roberts says he’s confident the company can still find a buyer for the transmission belt division, saying it "continues to generate positive earnings and cash flow."
Roberts also noted that the decision to cease operations will not impact the continued operations of Carlisle Industrial Brake and Friction, which offers off-highway industrial, agricultural and military equipment as well as on-highway and towed vehicle actuation systems.
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