CSW Industrials Deploys Over $30 Million, Executing on Acquisition Strategy in HVAC/R and Plumbing End Markets, With Focus on Indoor Air Quality
06 Février 2024 - 10:15PM
CSW Industrials, Inc. (Nasdaq: CSWI) today announced the strategic
deployment of $30.3 million, excluding future earn-outs, upon
completing the acquisitions of Dust Free, LP, Guardian Drain Lock,
and Sure Grade Drain. These acquisitions are evidence of the
Company’s continued commitment to add innovative product offerings
for existing residential and commercial customers by maximizing its
extensive experience in the HVAC/R and plumbing end markets and
leveraging its robust distribution channels and go-to-market
strategy. CSWI funded the transactions with cash on hand and
borrowings under its existing $500 million revolving credit
facility.
Joseph B. Armes, Chairman, President, and Chief
Executive Officer of CSW Industrials, said, “These
acquisitions are completely consistent with our record of enhancing
long-term shareholder value as we continue to drive impressive
inorganic and organic above-market growth in our current end
markets.”
Mr. Armes continued, “Having served as a Master
Distributor of Dust Free indoor air quality (IAQ) products since
2021, we know how well these newly acquired products complement
CSWI’s existing HVAC/R offerings and integrate directly into
Contractor Solutions’ sales channel, warehouses, distribution
networks, and supply chain. The addition of Dust Free’s high
value-added products further solidifies our leadership position in
the HVAC/R marketplace.”
Jeff Underwood, Senior Vice President of Sales
and Marketing for Contractor Solutions commented, “We are excited
to continue investing in our breadth and depth of products within
Contractor Solutions. Adding Dust Free to our portfolio allows us
to offer industry leading technology to address indoor air quality.
I could not be more excited to work with the Dust Free team to
increase the distribution and evolution of these products. The
addition of Guardian Drain Lock and Sure Grade Drain extend our
innovative plumbing offerings to our distribution channels.”
The $27.4 million of capital for the acquisition
of Dust Free, excluding future earn-outs, represents a valuation of
approximately 7.5x Dust Free’s trailing twelve-month adjusted
earnings before interest, taxes, depreciation, and amortization
(EBITDA).
The acquisition of Dust Free brings a family of
IAQ products to CSWI that are designed to improve the quality of
the air we breathe. Dust Free’s IAQ strategy integrates three
levels of products to increase the overall air quality of a space:
Filtration, Purification, and UV Inactivation. Through these
differentiated products, Contractor Solutions expects to achieve
incremental market penetration and positively impact the health of
our customers.
In addition to Dust Free, CSWI also closed two
small product line acquisitions, totaling $2.9 million, in the
second fiscal quarter of 2024 for Guardian Drain Lock and Sure
Grade Drain. These two acquisitions further expand the Company’s
position in the plumbing end market. The Guardian Drain Lock
portfolio offers tamper-proof locking floor sinks and floor drains
designed for commercial use to protect unwanted debris from
clogging and backing up plumbing lines and help to maintain a safe
and hygienic environment. Sure Grade Drain was an IP acquisition
for an innovative on-grade adjustable drain primarily used in
commercial settings.
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About CSW IndustrialsCSW
Industrials is a diversified industrial growth company with
industry-leading operations in three segments: Contractor
Solutions, Specialized Reliability Solutions, and Engineered
Building Solutions. CSWI provides niche, value-added products with
two essential commonalities: performance and reliability. The
primary end markets we serve with our well-known brands include:
HVAC/R, plumbing, general industrial, architecturally-specified
building products, energy, mining, and rail transportation. For
more information, please
visit www.cswindustrials.com.
Investor Relations
Alexa HuertaVice President, Investor Relations, &
Treasurer214-489-7113alexa.huerta@cswindustrials.com
CSW Industrials (NASDAQ:CSWI)
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