CSW Industrials Deploys $40 Million of Acquisition Capital in Contractor Solutions Segment
CSW Industrials (CSWI) has announced the strategic acquisition of PSP Products, Inc. for $40 million. This move expands CSWI's Contractor Solutions segment, adding surge protection devices and load management systems to its product portfolio. The acquisition, valued at approximately 5.0x PSP's trailing twelve-month EBITDA, is expected to be accretive to earnings per share in the first full year. CSWI funded the transaction with cash on hand and borrowings from its existing $500 million revolving credit facility.
This acquisition aligns with CSWI's strategy to leverage its HVAC/R distribution channel and drive long-term shareholder value. The integration of PSP is anticipated to yield additional market share gains and foster innovation in HVAC electrical products. Since going public in October 2015, CSWI has invested a cumulative $647 million in acquisitions.
CSW Industrials (CSWI) ha annunciato l'acquisizione strategica di PSP Products, Inc. per 40 milioni di dollari. Questa mossa espande il segmento Contractor Solutions di CSWI, aggiungendo dispositivi di protezione da sovratensioni e sistemi di gestione del carico al suo portafoglio prodotti. L'acquisizione, valutata a circa 5,0 volte l'EBITDA degli ultimi dodici mesi di PSP, si prevede che sia accrittiva per l'utile per azione nel primo anno completo. CSWI ha finanziato la transazione con liquidità disponibile e prestiti dalla sua attuale linea di credito revolving da 500 milioni di dollari.
Questa acquisizione è in linea con la strategia di CSWI di sfruttare il proprio canale di distribuzione HVAC/R e di generare valore per gli azionisti a lungo termine. Si prevede che l'integrazione di PSP porti a un ulteriore guadagno di quote di mercato e favorisca l'innovazione nei prodotti elettrici HVAC. Dalla sua quotazione in borsa nell'ottobre 2015, CSWI ha investito un totale di 647 milioni di dollari in acquisizioni.
CSW Industrials (CSWI) ha anunciado la adquisición estratégica de PSP Products, Inc. por 40 millones de dólares. Este movimiento expande el segmento Contractor Solutions de CSWI, añadiendo dispositivos de protección contra sobretensiones y sistemas de gestión de carga a su portafolio de productos. La adquisición, valorada en aproximadamente 5,0 veces el EBITDA de PSP en los últimos doce meses, se espera que sea acrecitiva para las ganancias por acción en el primer año completo. CSWI financió la transacción con efectivo disponible y préstamos de su línea de crédito revolving existente de 500 millones de dólares.
Esta adquisición se alinea con la estrategia de CSWI de aprovechar su canal de distribución HVAC/R y generar valor a largo plazo para los accionistas. Se anticipa que la integración de PSP genere una mayor participación en el mercado y fomente la innovación en productos eléctricos HVAC. Desde su salida a bolsa en octubre de 2015, CSWI ha invertido un total de 647 millones de dólares en adquisiciones.
CSW Industrials (CSWI)는 PSP Products, Inc.를 4천만 달러에 전략적으로 인수했습니다. 이번 인수는 CSWI의 Contractor Solutions 부문을 확장하며, 제품 포트폴리오에 서지 보호 장치와 부하 관리 시스템을 추가합니다. 이번 인수는 PSP의 최근 12개월 EBITDA의 약 5.0배에 해당하며, 첫 해의 주당 순이익에 긍정적인 영향을 미칠 것으로 예상됩니다. CSWI는 현금과 5억 달러 규모의 기존 리볼빙 신용 시설에서의 대출로 거래를 자금 조달했습니다.
이번 인수는 CSWI가 HVAC/R 유통 채널을 활용하고 장기적인 주주 가치를 창출하려는 전략에 부합합니다. PSP의 통합은 추가적인 시장 점유율 증가와 HVAC 전기 제품 혁신을 촉진할 것으로 기대됩니다. 2015년 10월 상장 이후, CSWI는 인수에 총 6억 4천 7백만 달러를 투자했습니다.
CSW Industrials (CSWI) a annoncé l'acquisition stratégique de PSP Products, Inc. pour 40 millions de dollars. Ce mouvement élargit le segment Contractor Solutions de CSWI, ajoutant des dispositifs de protection contre les surtensions et des systèmes de gestion de charge à son portefeuille de produits. L'acquisition, évaluée à environ 5,0 fois l'EBITDA des douze derniers mois de PSP, devrait être accritive pour le résultat par action au cours de la première année complète. CSWI a financé la transaction avec des liquidités disponibles et des emprunts de sa ligne de crédit revolving existante de 500 millions de dollars.
Cette acquisition s'inscrit dans la stratégie de CSWI de tirer parti de son canal de distribution HVAC/R et de générer de la valeur à long terme pour les actionnaires. L'intégration de PSP devrait générer des gains supplémentaires de parts de marché et favoriser l'innovation dans les produits électriques HVAC. Depuis son introduction en bourse en octobre 2015, CSWI a investi un total de 647 millions de dollars dans des acquisitions.
CSW Industrials (CSWI) hat die strategische Übernahme von PSP Products, Inc. für 40 Millionen Dollar angekündigt. Dieser Schritt erweitert den Contractor Solutions-Sektor von CSWI und fügt Schutzvorrichtungen gegen Überspannungen sowie Lastmanagement-Systeme zum Produktportfolio hinzu. Die Übernahme, die auf etwa 5,0-fache des EBITDA von PSP der letzten zwölf Monate geschätzt wird, wird voraussichtlich im ersten vollen Jahr das Ergebnis je Aktie erhöhen. CSWI finanzierte die Transaktion mit verfügbarem Bargeld und Krediten aus seiner bestehenden revolvierenden Kreditlinie über 500 Millionen Dollar.
Diese Übernahme steht im Einklang mit der Strategie von CSWI, den HVAC/R Vertriebsweg zu nutzen und langfristigen Aktionärswert zu schaffen. Die Integration von PSP wird voraussichtlich zu zusätzlichen Marktanteilsgewinnen führen und die Innovation in HVAC-Elektroprodukten vorantreiben. Seit dem Börsengang im Oktober 2015 hat CSWI insgesamt 647 Millionen Dollar in Übernahmen investiert.
- Acquisition expected to be accretive to earnings per share in the first full year
- Valuation at 5.0x PSP's trailing twelve-month EBITDA, potentially indicating a good deal
- Expands product offering in the Contractor Solutions segment
- Leverages existing HVAC/R distribution channel
- Potential for market share gains and increased innovation
- Increased debt due to borrowing for the acquisition
- Integration risks associated with merging PSP into CSWI's operations
Insights
CSW Industrials'
The acquisition is expected to be accretive to earnings in the first full year, indicating potential near-term financial benefits. However, investors should monitor integration progress and synergy realization. The use of cash and existing credit facility for funding shows financial flexibility but may impact the balance sheet short-term.
This acquisition strengthens CSWI's position in the HVAC/R distribution channel, potentially leading to market share gains. PSP's innovative surge protection and load management products complement CSWI's existing offerings, creating cross-selling opportunities.
The move aligns with industry trends towards smart home technologies and energy management solutions. By integrating PSP's expertise, CSWI can enhance its product innovation capabilities, important in the competitive HVAC market. Investors should watch for CSWI's ability to leverage PSP's technology to drive growth and maintain its competitive edge in the evolving contractor solutions landscape.
Investment Highlights
- Capital investment of
$40 million for acquisition of PSP Products, Inc., which offers a diverse line of surge protection devices and industry leading load management systems - Valuation represents approximately 5.0x PSP Products’ trailing twelve-months’ EBITDA
- Expected to be accretive to earnings per share in the first full year of ownership
$647M M of cumulative acquisition capital investment since going public in October 2015
DALLAS, Aug. 06, 2024 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (Nasdaq: CSWI) today announced the strategic acquisition of PSP Products, Inc. (“PSP”), deploying
Joseph B. Armes, Chairman, President, and Chief Executive Officer of CSW Industrials, said, “I am pleased to announce the acquisition of PSP to our shareholders. Adding new customers and partners into the CSWI family along with innovative products is expected to yield additional market share gains within the Contractor Solutions segment. This new acquisition represents incremental, synergistic inorganic growth within our current end markets and aligns with our objective to drive long-term shareholder value.”
Jeff Underwood, Senior Vice President of CSWI and General Manager, Contractor Solutions, commented, “PSP has been a great partner for CSWI in recent years, as our teams have worked hand in hand co-developing an industry-leading series of HVAC electrical products. Bringing the PSP team into our organization will allow us to continue our pace of innovation and allows CSWI to better serve electrical distributors and contractors through the expansion of our product offering.”
The acquisition of PSP Products, Inc. brings a family of superior surge protection and load management products to CSWI. PSP utilizes a differentiated technology approach to its electrical management devices to ensure reliability, vigor, and strength. All PSP surge protection devices are designed, tested and built to perform in extreme conditions for decades. PSP is the industry leader in load management systems, offering novel products which make generator installation jobs easier and more profitable.
The
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About CSW Industrials
CSW 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 Huerta
Vice President, Investor Relations, & Treasurer
214-489-7113
alexa.huerta@cswindustrials.com
FAQ
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