CSW Industrials Announces Definitive Agreement to Acquire Aspen Manufacturing for $313.5 Million, Executing Disciplined Capital Allocation and Strategic Expansion in the HVAC/R End Market

Core Viewpoint - CSW Industrials, Inc. has entered into a definitive agreement to acquire Aspen Manufacturing for approximately $313.5 million in cash, which is expected to enhance CSWI's HVAC/R product portfolio and market position [2][5]. Group 1: Acquisition Details - The acquisition price of$313.5 million represents approximately 11 times Aspen Manufacturing's estimated 2024 adjusted EBITDA of $28.5 million [2][6]. - CSWI plans to fund the acquisition using a combination of cash on hand and debt from its existing$500 million credit facility, with the closing expected in the first quarter of CSWI's 2026 fiscal year [2][3]. Group 2: Aspen Manufacturing Overview - Aspen Manufacturing, based in Humble, Texas, is a leading independent manufacturer of evaporator coils and air handlers for the HVAC/R industry, with estimated 2024 revenues of $122.4 million [3][4]. - The company is recognized for its high-quality products, all of which are designed, engineered, and assembled in the United States [3][4]. Group 3: Strategic Fit and Market Position - Aspen Manufacturing is well-positioned to address the current refrigerant transition, manufacturing products compatible with both legacy and new refrigerants [4]. - The acquisition aligns with CSWI's strategy to expand its HVAC/R product offerings and leverage existing distribution channels to increase market share [6][11].