CSW Industrials acquires Aspen Manufacturing for $313.5 million, enhancing its HVAC/R product portfolio and market presence.
Quiver AI Summary
CSW Industrials, Inc. announced the completion of its acquisition of Aspen Manufacturing for approximately $313.5 million in cash. The deal was financed with cash on hand and borrowings from its revolving credit facility, ensuring the company maintains liquidity and a strong balance sheet. This acquisition is valued at about 11 times Aspen's projected 2024 EBITDA of $28.5 million and will enhance CSW's HVAC/R product lineup by incorporating Aspen's high-quality evaporator coils and air handlers. CSW's Chairman and CEO, Joseph B. Armes, expressed optimism about the acquisition, highlighting the potential for growth and increased shareholder value. Aspen Manufacturing, based in Humble, TX, specializes in products for residential and light commercial markets, all engineered and assembled in the U.S.
Potential Positives
- The acquisition of Aspen Manufacturing for approximately $313.5 million enhances CSW Industrials' HVAC/R product offerings, integrating market-leading evaporator coils and air handlers.
- This strategic move is expected to drive above-market growth and enhance long-term value for shareholders by leveraging CSW's existing market presence and distribution channels.
- The acquisition adds approximately 350 new employees to CSW Industrials, potentially increasing the company’s human resources and expertise in the HVAC/R sector.
- The deal was financed using cash on hand and borrowings under a revolving credit facility, indicating the company's strong balance sheet and liquidity position.
Potential Negatives
- The acquisition price for Aspen Manufacturing at approximately 11x EBITDA may raise concerns about overvaluation, particularly if Aspen's performance does not meet projections.
- Utilizing cash on hand and borrowings under the existing revolving credit facility for the acquisition may strain CSW Industrials' financial resources and affect liquidity metrics.
- The reliance on forward-looking statements increases the risk of investor skepticism, as actual results may differ materially from estimates, potentially impacting shareholder confidence.
FAQ
What is the recent acquisition announced by CSW Industrials?
CSW Industrials completed the acquisition of Aspen Manufacturing for approximately $313.5 million in cash.
How will Aspen Manufacturing enhance CSW's product offerings?
Aspen Manufacturing's market-leading evaporator coils and air handlers will expand CSW's HVAC/R product portfolio.
What is the expected financial impact of the acquisition?
The acquisition is anticipated to drive above-market growth and enhance long-term value for CSW shareholders.
Where are Aspen Manufacturing's products designed and assembled?
All of Aspen Manufacturing's products are designed, engineered, and assembled in the United States.
How can investors learn more about the acquisition?
Additional information can be found on CSW Industrials' website, including transaction documents and investor presentations.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$CSWI Insider Trading Activity
$CSWI insiders have traded $CSWI stock on the open market 81 times in the past 6 months. Of those trades, 0 have been purchases and 81 have been sales.
Here’s a breakdown of recent trading of $CSWI stock by insiders over the last 6 months:
- DON SULLIVAN (EVP, Chief Strategy Officer) has made 0 purchases and 19 sales selling 9,416 shares for an estimated $3,152,167.
- JOSEPH B ARMES (Chairman, President & CEO) has made 0 purchases and 37 sales selling 6,000 shares for an estimated $2,079,230.
- LUKE ALVERSON (SVP, GC & Secretary) has made 0 purchases and 14 sales selling 6,057 shares for an estimated $2,042,893.
- ROBERT M SWARTZ has made 0 purchases and 6 sales selling 800 shares for an estimated $254,548.
- JEFF UNDERWOOD (SVP, GM Contractor Solutions) sold 362 shares for an estimated $150,986
- JAMES E PERRY (EVP, CFO) has made 0 purchases and 4 sales selling 435 shares for an estimated $132,226.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$CSWI Hedge Fund Activity
We have seen 183 institutional investors add shares of $CSWI stock to their portfolio, and 164 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- NEUBERGER BERMAN GROUP LLC removed 260,755 shares (-28.2%) from their portfolio in Q4 2024, for an estimated $91,994,364
- PROFICIO CAPITAL PARTNERS LLC added 201,587 shares (+35553.3%) to their portfolio in Q4 2024, for an estimated $71,119,893
- NORGES BANK added 167,943 shares (+inf%) to their portfolio in Q4 2024, for an estimated $59,250,290
- MORGAN STANLEY removed 128,199 shares (-24.4%) from their portfolio in Q4 2024, for an estimated $45,228,607
- UBS GROUP AG added 101,545 shares (+782.1%) to their portfolio in Q4 2024, for an estimated $35,825,076
- BLACKROCK, INC. added 90,123 shares (+3.6%) to their portfolio in Q4 2024, for an estimated $31,795,394
- GOLDMAN SACHS GROUP INC added 87,167 shares (+156.1%) to their portfolio in Q4 2024, for an estimated $30,752,517
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
DALLAS, May 01, 2025 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (Nasdaq: CSWI) (the “Company” or “CSW”) today announced the Company has completed the previously announced acquisition of Aspen Manufacturing for approximately $313.5 million in cash, utilizing cash on hand and borrowings under the existing $500 million revolving credit facility while maintaining sufficient liquidity and a strong balance sheet. The purchase price is approximately 11x Aspen Manufacturing’s 2024 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $28.5 million.
This strategic acquisition expands CSW Industrial’s HVAC/R product offering with the incorporation of Aspen Manufacturing’s market leading evaporator coils and air handlers. By leveraging CSW’s deep experience in the HVAC/R market, strong distribution channels, successful go-to-market strategy, and demonstrated track record of industrial manufacturing, this acquisition is expected to drive market and customer share of wallet gains, while providing an enhanced service offering and maximizing channels to market.
Aspen Manufacturing’s current product suite includes a vast range of high-quality residential and light commercial evaporator coils, blowers, and air handling units for single-family, multi-family, and manufactured homes. Based in Humble, TX, all of Aspen’s products are designed, engineered, and assembled in the United States.
Joseph B. Armes, Chairman, President, and Chief Executive Officer of CSW Industrials, commented, “We are pleased to have consummated the Aspen Manufacturing acquisition and to welcome approximately 350 new colleagues to the CSW Industrials family. By adding Aspen Manufacturing, CSW expects to further drive above-market growth through the expansion of our highly profitable and resilient HVAC/R product portfolio thereby enhancing long-term value for all of CSW’s shareholders.”
For additional information about CSW Industrials’ acquisition of Aspen Manufacturing, please visit the previously released transaction documents, including the March 18, 2025 press release and investor presentation, which are both available on the Company’s website at https://cswindustrials.gcs-web.com .
Safe Harbor Statement
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, effective tax rate, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations, and financial performance and condition.
The forward-looking statements included in this press release are based on our current expectations, projections, estimates, and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the risk factors described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
This press release contains estimated results of Aspen Manufacturing for the calendar year 2024 (the “estimated results”). The estimated results are forward-looking statements based on Aspen Manufacturing’s management’s preliminary, unaudited results as of the date hereof, and Aspen Manufacturing’s actual results may be materially different from the estimated results. We assume no obligation to update any forward-looking statement as a result of new information, future events or other factors. Accordingly, you should not place undue reliance on the estimated results. Our independent registered public accounting firm has not audited, reviewed or performed any procedures with respect to the estimated results and does not express any opinion or any other form of assurance with respect thereto.
All forward-looking statements included in this press release are based on information currently available to us, and we assume no obligation to update any forward-looking statement except as may be required by law.
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. The Company 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, electrical, general industrial, architecturally-specified building products, energy, mining, and rail transportation. For more information, please visit
www.cswindustrials.com
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Investor Relations
Alexa Huerta
Vice President, Investor Relations, & Treasurer
214-489-7113
[email protected]