Carlisle Companies to Acquire Plasti-Fab, a Canadian Based Vertically Integrated Manufacturer of Expanded Polystyrene Insulation Products
Carlisle Companies Incorporated (NYSE:CSL) has announced a definitive agreement to acquire Plasti-Fab, a leading provider of expanded polystyrene (EPS) insulation products, for $259.5 million in cash. This acquisition aligns with Carlisle's Vision 2030 strategy and is expected to establish the company as an industry leader in the $1.5B North American EPS insulation market.
Key highlights of the acquisition include:
- Purchase price represents 6.7x adjusted EBITDA for the twelve months ended August 31, 2024, inclusive of run-rate cost synergies
- Plasti-Fab generated revenue of $109 million for the twelve months ended August 31, 2024
- Expected to add approximately $0.30 of adjusted earnings per share in 2025
- Anticipated annual cost synergies of $14 million within the first three years
- Expands Carlisle's geographic presence in Canada and the Midwestern United States
The acquisition is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
- Acquisition establishes Carlisle as an industry leader in the $1.5B North American EPS insulation market
- Expected to add approximately $0.30 of adjusted earnings per share in 2025
- Anticipated annual cost synergies of $14 million within the first three years
- Expands geographic presence in Canada and the Midwestern United States
- Aligns with Carlisle's Vision 2030 strategy for growth and synergistic M&A
- Plasti-Fab has a 10-year track record of above-market growth
- Significant cash outlay of $259.5 million for the acquisition
Insights
The acquisition of Plasti-Fab by Carlisle Companies is a strategic move that aligns with the company's Vision 2030 strategy. This
Key financial highlights include:
- Plasti-Fab's revenue of
$109 million for the 12 months ended August 31, 2024 - Expected annual cost synergies of
$14 million within three years - Expansion into the
$1.5 billion North American expanded polystyrene insulation market
This acquisition strengthens Carlisle's position in the building products sector, potentially driving long-term growth and margin expansion through vertical integration and increased market share. The deal's structure and expected synergies suggest a positive impact on Carlisle's financial performance and shareholder value in the medium term.
Carlisle's acquisition of Plasti-Fab is a strategic move that positions the company as a leader in the North American expanded polystyrene (EPS) insulation market. This deal addresses several key market trends:
- Growing demand for energy-efficient building materials
- Increased focus on sustainable construction practices
- Consolidation in the building products industry
By acquiring Plasti-Fab, Carlisle gains vertical integration capabilities and expands its geographic footprint, particularly in Canada and the Midwestern United States. This move allows Carlisle to better serve the commercial, residential and infrastructure construction markets, potentially capturing a larger market share and improving its competitive position.
The acquisition also aligns with the broader industry trend of companies seeking to enhance their product portfolios and operational efficiencies through strategic M&A activities. This deal could spark further consolidation in the insulation and building materials sector as competitors look to maintain their market positions.
- Acquisition is consistent with Vision 2030 strategy to acquire superior building envelope products and solutions within Carlisle’s existing core
- Track record of above market growth in the expanded polystyrene market driven by tenured management team with deep experience
-
Meaningful annual cost synergies of
expected within the first three years$14 million -
Establishes Carlisle as an industry leader in the
North American expanded polystyrene insulation market, adding approximately$1.5B of adjusted earnings per share in 2025$0.30
Plasti-Fab is headquartered in
Consistent with Carlisle’s stated Vision 2030 strategy, the Plasti-Fab acquisition leverages Carlisle’s mergers and acquisitions “M&A” engine and fulfills its three core M&A tenets including an embedded organic growth story with a 10-year track record of above market growth, identified hard cost synergies of
Chris Koch, Chair, President, and Chief Executive Officer, said, “The acquisition of Plasti-Fab delivers vertically integrated polystyrene capabilities to our Insulfoam EPS business while adding scale, supporting retail channel growth, and filling key geographic gaps in the
The acquisition, which is subject to customary closing conditions, is expected to close in the fourth quarter of 2024.
Forward-Looking Statements
This press release contains forward-looking statements, including those with respect to the acquisition of Plasti-Fab, our ability to achieve expected cost synergies from the acquisition, our ability to integrate Plasti-Fab after the closing, and the anticipated timing of the closing of the transaction. These statements represent only Carlisle’s current belief regarding future events, many of which, by their nature, are inherently uncertain and outside of Carlisle’s control. Actual results could differ materially from those reflected in this press release for various reasons, including the failure of the parties to meet or waive closing conditions and the failure to receive required regulatory approvals. Carlisle disclaims any obligation to update forward-looking statements except as required by law.
Non-GAAP Measures
This press release also contains references to adjusted earnings per share and adjusted EBITDA, neither of which are recognized under
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. Learn more about Carlisle at www.carlisle.com.
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Mehul Patel
Vice President, Investor Relations
Carlisle Companies Incorporated
(310) 592-9668
mpatel@carlisle.com
Source: Carlisle Companies Incorporated
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