Investing.com -- High-tech electronics solutions provider Amphenol (NYSE:APH) has announced that it has agreed to acquire a division of Carlisle Companies (NYSE:CSL) in a deal worth more than $2 billion in cash.
The move will see Amphenol fold Carlisle Interconnect Technologies (CIT), a global supplier of cables and connectors commercial air and defense firms, into its slate of offerings. CIT is anticipated to post 2024 sales and adjusted core earnings of margin of about $900 million and 20%, respectively.
"We look forward to benefiting from this enhanced position with these important customers in the commercial air, defense and industrial markets long into the future," Amphenol Chief Executive Officer Adam Norwitt said in a statement.
Amphenol and other defense industry groups have recently benefited in the past year from nations increasing spending on next-generation technologies following an uptick in geopolitical tensions. The trend has helped Connecticut-based Amphenol offset weaker demand for laptops and tablets that has hit the wider consumer electronics market.
Amphenol projected that the transaction will be completed by the end of the second quarter of this year, adding that it is expected to be accretive to its earnings per share "in the first year post closing."
Evercore is serving as the group's financial advisor and Latham & Watkins as its legal advisor.