CSW Industrials Invests $40 Million in Innovative Plumbing Solutions
Investment Highlights
- Capital investment of $40 million for the acquisition of PF Waterworks, LP, which offers innovative, eco-friendly drain management solutions.
- Valuation represents approximately 9.5x PF Waterworks’ trailing twelve-month EBITDA.
- Expected to be accretive to earnings per share in the first full year of ownership.
- An impressive $695 million of cumulative acquisition capital investment since going public.
CSW Industrials, Inc. (NASDAQ: CSWI), headquartered in Dallas, has announced an innovative stride in the plumbing industry by securing a $40 million investment for the acquisition of PF Waterworks, LP. This strategic acquisition is an important addition to CSW Industrials' Contractor Solutions Segment, reflecting a commitment to enhancing its portfolio with products that promise performance and sustainability in the plumbing market.
Joseph B. Armes, the Chairman, President, and CEO of CSW Industrials, expressed enthusiasm about the acquisition, stating, “I am pleased to announce the acquisition of PF Waterworks, which aligns well with our existing plumbing end market where we see ample opportunities for expansion. Integrating these products into our offerings will not only enhance variety but will also fuel our growth and market share.”
This acquisition demonstrates CSW's strategy of investing in innovative technologies that set new standards for the plumbing industry, particularly with PF Waterworks’ unique focus on eco-friendly solutions. PF Waterworks is renowned for developing pioneering plumbing products aimed at clean and sustainable practices for residential and commercial use. The advanced technology behind these products emphasizes public health and safety while ensuring reliability, making complex plumbing issues easier for stakeholders such as homeowners, contractors, and property managers.
Jeff Underwood, the Senior Vice President at CSWI and General Manager of Contractor Solutions, added, “Bringing the PF Waterworks team into the CSWI family is an exciting opportunity. I've closely monitored their growth, and I believe their commitment to innovation and customer service aligns perfectly with CSWI's core values.”
The $40 million investment demonstrates a robust valuation; specifically, it reflects a multiple of approximately 9.5 times the trailing twelve-month adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of PF Waterworks, inclusive of working capital adjustments but excluding potential future earn-outs.
A key detail to note is CSW Industrials’ proactive approach to its financial strategy. Since it went public, the company has now reached a total of $695 million in acquisitions, reinforcing its position as a leader in the industry. This substantial investment will not only affect the company's financial metrics positively but will also allow for more comprehensive service offerings in plumbing solutions.
About CSW Industrials
CSW Industrials is a diversified industrial growth company that operates in three primary segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions. The company is recognized for its commitment to providing value-added products characterized by outstanding performance and reliability. Scale and reach in diverse markets like HVAC/R, plumbing, electrical, general industrial, and building products position CSWI as a pivotal player across various industries. As the market evolves, CSW remains dedicated to enhancing its capabilities through acquisitions that align with its strategic goals.
Investor Relations
Alexa Huerta
Vice President, Investor Relations, & Treasurer
214-489-7113
alexa.huerta@cswindustrials.com
Frequently Asked Questions
What is the recent acquisition made by CSW Industrials?
CSW Industrials recently announced a $40 million acquisition of PF Waterworks, LP, enhancing its plumbing solutions.
What benefits does the acquisition of PF Waterworks bring to CSW Industrials?
The acquisition enhances CSW's portfolio with eco-friendly plumbing products and is expected to be accretive to earnings per share in its first full year.
How significant is CSW Industrials' total acquisition capital since going public?
Since going public, CSW Industrials has made cumulative acquisitions totaling $695 million, reinforcing its industry presence.
What are PF Waterworks’ specialty products?
PF Waterworks specializes in innovative plumbing products that focus on eco-friendly solutions for both residential and commercial applications.
What is CSW Industrials’ primary market focus?
CSW Industrials primarily focuses on markets like HVAC/R, plumbing, electrical, and other industrial solutions, offering reliable and high-performance products.
