DALLAS - CSW Industrials, Inc. (NASDAQ:CSWI) has announced the completion of strategic acquisitions, including Dust Free, LP, for a capital investment of $27.4 million, which is valued at approximately 7.5 times Dust Free's trailing twelve-month EBITDA, excluding potential future earn-outs. This acquisition, along with the purchase of Guardian Drain Lock and Sure Grade Drain, totaling $2.9 million, signifies CSW Industrials' continued expansion in the HVAC/R and plumbing sectors.
The acquired companies are expected to contribute positively to CSW Industrials' earnings per share in the first full year of ownership. Since December 2020, CSW Industrials has invested a cumulative $521 million in acquisitions within its high-margin, high-growth Contractor Solutions segment.
Dust Free brings a patented product line designed to enhance indoor air quality through three levels: Filtration, Purification, and UV Inactivation. As a Master Distributor of Dust Free's products since 2021, CSW Industrials is familiar with the integration potential of these offerings into its existing HVAC/R portfolio.
The additional acquisitions include Guardian Drain Lock, offering tamper-proof locking floor sinks and drains for commercial use, and Sure Grade Drain, an innovative adjustable drain for commercial settings. These acquisitions are set to expand the company's plumbing end market presence.
Joseph B. Armes, Chairman, President, and CEO of CSW Industrials, expressed confidence in the acquisitions, stating they align with the company's record of enhancing shareholder value and driving growth. Jeff Underwood, Senior Vice President of Sales and Marketing for Contractor Solutions, also noted the excitement about investing in the product range, particularly the industry-leading technology from Dust Free that addresses indoor air quality concerns.
The transactions were funded through cash on hand and borrowings under CSW Industrials' existing $500 million revolving credit facility.
The information in this article is based on a press release.
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