CSW Industrials Strengthens Portfolio with Aspen Acquisition
CSW Industrials Finalizes Acquisition of Aspen Manufacturing
CSW Industrials, Inc. (Nasdaq: CSWI) has successfully completed its acquisition of Aspen Manufacturing, a strategic move valued at approximately $313.5 million. This acquisition was financed through a blend of cash on hand and borrowings from its existing revolving credit facility, ensuring the company maintains a robust liquidity position and a solid balance sheet. The acquisition price reflects about 11 times Aspen Manufacturing's projected adjusted EBITDA of $28.5 million for the upcoming year.
Expansion of HVAC/R Product Offerings
This acquisition is poised to significantly expand CSW Industrials' offerings in the HVAC/R sector by integrating Aspen Manufacturing’s industry-leading products, including evaporator coils and air handling units. With CSW’s extensive experience in the HVAC/R market and a reliable distribution network, the integration is expected to enhance market penetration and customer engagement, driving growth and expanding market share.
A Comprehensive Product Range from Aspen Manufacturing
Aspen Manufacturing boasts an impressive product lineup that includes high-quality evaporator coils and air handling systems tailored for residential and light commercial applications. Their offerings cater to a variety of housing needs, from single-family homes to multi-family units, and all products are designed and manufactured within the United States, adding to their appeal for domestic markets.
Leadership Comments on the Acquisition
Joseph B. Armes, Chairman, President, and Chief Executive Officer of CSW Industrials, expressed his enthusiasm regarding the integration of Aspen Manufacturing, stating, "We are delighted to have completed this acquisition and welcome approximately 350 new team members into the CSW family. Adding Aspen Manufacturing to our portfolio is expected to propel growth beyond market expectations and enhance the long-term value for our shareholders."
About CSW Industrials
CSW Industrials is recognized as a diversified industrial growth company with key operations across three primary segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions. The company is dedicated to delivering niche, value-driven products that prioritize performance and reliability. CSW’s strong brand portfolio addresses various markets including HVAC/R, plumbing, electrical, and mining, consistently aiming to meet diverse customer needs with innovative solutions.
Frequently Asked Questions
What was the acquisition cost for Aspen Manufacturing?
The acquisition of Aspen Manufacturing by CSW Industrials was completed for approximately $313.5 million.
How will this acquisition benefit CSW Industrials?
The acquisition is expected to enhance CSW’s HVAC/R product offerings and improve market share through strategic integration of Aspen's products and services.
Where are Aspen Manufacturing's products designed and manufactured?
All of Aspen Manufacturing's products are designed, engineered, and assembled in the United States.
Who is the CEO of CSW Industrials?
The CEO of CSW Industrials is Joseph B. Armes, who is also the Chairman and President.
What are CSW Industrials’ primary market segments?
CSW Industrials operates in Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions, serving various industries with its product offerings.
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