Carlisle Companies Completes Purchase of Plasti-Fab

Rhea-AI Summary

Carlisle Companies (NYSE:CSL) has completed the acquisition of Plasti-Fab, an EPS insulation segment of PFB Holdco, for $259.5 million in cash. Plasti-Fab, headquartered in Calgary, Alberta, is a leading provider of EPS insulation products with eight manufacturing facilities in Canada and three in the United States, serving commercial, residential, and infrastructure construction markets.

The acquisition aligns with Carlisle's Vision 2030 strategy and meets its four core M&A tenets: organic growth potential, identified cost synergies, strong management team, and integration capabilities. This strategic move strengthens Carlisle's position as a supplier of innovative building envelope products for energy-efficient buildings through its CCM and CWT divisions.

Positive

• Strategic acquisition of Plasti-Fab for $259.5M expands market presence in Canada and US
• Adds 11 manufacturing facilities to existing operations
• Strengthens building envelope product portfolio
• Aligns with company's Vision 2030 strategy and M&A objectives

Negative

• Significant cash outlay of $259.5M impacts company's liquidity

Insights

Financial Analyst

The $259.5 million acquisition of Plasti-Fab represents a strategic expansion of Carlisle's building envelope products portfolio. The deal strengthens CSL's market position in EPS insulation, particularly in Canada and the Midwest U.S., through 11 manufacturing facilities. The acquisition aligns with industry trends toward energy-efficient building solutions and provides vertical integration benefits. With Plasti-Fab's established presence in commercial, residential and infrastructure markets, CSL can leverage cross-selling opportunities and operational synergies. The deal's structure and immediate cash payment indicates strong financial position, while the geographic expansion provides natural hedging against regional market fluctuations. The integration into CSL's existing operations through their M&A playbook should accelerate value creation and margin expansion through cost synergies.

Market Research Analyst

This acquisition strategically positions Carlisle in the growing EPS insulation market, which is being driven by increasing demand for energy-efficient building materials and stricter building codes. The addition of Plasti-Fab's vertically integrated operations enhances supply chain control and manufacturing capabilities. The geographic expansion into Canada provides access to a stable construction market and diversifies revenue streams. The deal's timing aligns with the broader industry trend toward sustainable building solutions and energy efficiency requirements. The integration of Plasti-Fab's commercial and residential product lines complements Carlisle's existing portfolio and should create meaningful cross-selling opportunities across their combined customer base.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- Carlisle Companies Incorporated (NYSE:CSL) today announced that it has completed the previously announced purchase of the expanded polystyrene “EPS” insulation segment of PFB Holdco, Inc., a portfolio company of The Riverside Company, composed of the Plasti-Fab and Insulspan brands (collectively referred to as “Plasti-Fab”) for $259.5 million in cash.

Plasti-Fab, headquartered in Calgary, Alberta, is a leading vertically integrated provider of EPS insulation products in Canada and the Midwestern United States with eight manufacturing locations across Canada and three in the United States serving the commercial, residential, and infrastructure construction markets.

The acquisition of Plasti-Fab is consistent with Carlisle’s Vision 2030 strategy, leveraging Carlisle’s mergers and acquisitions “M&A” engine and fulfilling its four core M&A tenets including an embedded organic growth story, identified hard cost synergies, a strong and experienced management team, and an ability to drive integration success utilizing the Carlisle M&A playbook.

About Carlisle Companies Incorporated

Carlisle Companies Incorporated is a leading supplier of innovative building envelope products and solutions for more energy efficient buildings. Through its building products businesses – Carlisle Construction Materials (“CCM”) and Carlisle Weatherproofing Technologies (“CWT”) – and family of leading brands, Carlisle delivers innovative, labor reducing and environmentally responsible products and solutions to customers through the Carlisle Experience. Carlisle is committed to generating superior shareholder returns and maintaining a balanced capital deployment approach, including investments in our businesses, strategic acquisitions, share repurchases and continued dividend increases. Leveraging its culture of continuous improvement as embodied in the Carlisle Operating System (“COS”), Carlisle has committed to achieving net-zero greenhouse gas emissions by 2050.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241218373594/en/

Mehul Patel

Vice President, Investor Relations

Carlisle Companies Incorporated

(310) 592 - 9668

mpatel@carlisle.com

Source: Carlisle Companies Incorporated

FAQ

How much did Carlisle Companies (CSL) pay for Plasti-Fab acquisition?

Carlisle Companies paid $259.5 million in cash for the acquisition of Plasti-Fab.

How many manufacturing facilities did CSL acquire through the Plasti-Fab purchase?

Through the Plasti-Fab acquisition, CSL acquired 11 manufacturing facilities - eight in Canada and three in the United States.

What markets does Plasti-Fab serve under CSL ownership?

Under CSL ownership, Plasti-Fab serves the commercial, residential, and infrastructure construction markets.

How does the Plasti-Fab acquisition align with CSL's strategy?

The acquisition aligns with CSL's Vision 2030 strategy, meeting four core M&A tenets: organic growth potential, cost synergies, strong management team, and integration capabilities.

What products does Plasti-Fab manufacture for CSL?

Plasti-Fab manufactures EPS (expanded polystyrene) insulation products for CSL.