CSW Industrials Acquires PF Waterworks for $40 Million

Deal News | Nov 07, 2024 | Globenewswire

CSW Industrials Acquires PF Waterworks for $40 Million

CSW Industrials, Inc., a diversified industrial growth company, has announced the strategic acquisition of PF Waterworks, LP for $40 million. This move is part of CSW Industrials' strategy to expand its portfolio in the contractor solutions segment by investing in innovative and eco-friendly products. The acquisition is expected to be accretive to earnings per share in the first full year and represents a valuation of approximately 9.5x trailing twelve-month EBITDA for PF Waterworks. PF Waterworks is known for its environmentally-friendly drain management solutions that offer public health and safety certifications. The acquisition was funded with cash on hand by CSW Industrials, which has cumulatively invested $695 million in acquisitions since going public in 2015. Joseph B. Armes, CEO of CSW Industrials, highlighted that this acquisition offers synergies and additional opportunities for inorganic growth.

Sectors

  • Industrial
  • Plumbing

Geography

  • United States – CSW Industrials is based in Dallas, Texas, and the acquisition of PF Waterworks is relevant to their operations in the U.S.

Industry

  • Industrial – CSW Industrials operates in the broader industrial sector, focusing on niche, value-added industrial products.
  • Plumbing – The acquisition of PF Waterworks focuses on expanding CSW Industrials' offerings in the plumbing end market.

Financials

  • $40 million – The capital investment made for the acquisition of PF Waterworks.
  • 9.5x – The valuation multiple of PF Waterworks' trailing twelve-month EBITDA for the acquisition.
  • $695 million – Total cumulative acquisition capital investment by CSW Industrials since going public in 2015.

Participants

NameRoleTypeDescription
CSW Industrials, Inc.AcquirerCompanyA diversified industrial growth company focused on providing niche, value-added products in various segments.
PF Waterworks, LPTargetCompanyA company that develops and manufactures eco-friendly drain management solutions.
Joseph B. ArmesChairman, President and CEOPersonChairman, President, and CEO of CSW Industrials, overseeing strategic direction, including acquisitions.
Jeff UnderwoodSenior Vice President and General Manager, Contractor SolutionsPersonHe oversees the Contractor Solutions segment at CSW Industrials and played a role in the acquisition of PF Waterworks.