CSW Industrials Deploys Over $30 Million, Executing on Acquisition Strategy in HVAC/R and Plumbing End Markets, With Focus on Indoor Air Quality

Investment Highlights

• Capital investment of $27.4 million for acquisition of Dust Free, which offers an extensive line of patented products for residential and commercial indoor air quality and HVAC applications
• Valuation represents 7.5x Dust Free’s trailing twelve-months’ EBITDA, excluding future earn-outs, which if achieved would be incrementally accretive to CSWI
• Closed on two smaller acquisitions, totaling $2.9 million, in plumbing end market
• Expected to be accretive to earnings per share in the first full year of ownership
• $521MM of cumulative acquisition capital investment in the high-margin, high-growth Contractor Solutions segment since December 2020
  

DALLAS, Feb. 06, 2024 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (Nasdaq: CSWI) today announced the strategic deployment of $30.3 million, excluding future earn-outs, upon completing the acquisitions of Dust Free, LP, Guardian Drain Lock, and Sure Grade Drain. These acquisitions are evidence of the Company’s continued commitment to add innovative product offerings for existing residential and commercial customers by maximizing its extensive experience in the HVAC/R and plumbing end markets and leveraging its robust distribution channels and go-to-market strategy. CSWI funded the transactions with cash on hand and borrowings under its existing $500 million revolving credit facility.

Joseph B. Armes, Chairman, President, and Chief Executive Officer of CSW Industrials, said, “These acquisitions are completely consistent with our record of enhancing long-term shareholder value as we continue to drive impressive inorganic and organic above-market growth in our current end markets.”

Mr. Armes continued, “Having served as a Master Distributor of Dust Free indoor air quality (IAQ) products since 2021, we know how well these newly acquired products complement CSWI’s existing HVAC/R offerings and integrate directly into Contractor Solutions’ sales channel, warehouses, distribution networks, and supply chain. The addition of Dust Free’s high value-added products further solidifies our leadership position in the HVAC/R marketplace.”

Jeff Underwood, Senior Vice President of Sales and Marketing for Contractor Solutions commented, “We are excited to continue investing in our breadth and depth of products within Contractor Solutions. Adding Dust Free to our portfolio allows us to offer industry leading technology to address indoor air quality. I could not be more excited to work with the Dust Free team to increase the distribution and evolution of these products. The addition of Guardian Drain Lock and Sure Grade Drain extend our innovative plumbing offerings to our distribution channels.”