CSW Industrials to Acquire Aspen Manufacturing for $313.5 Million

Deal News | Mar 18, 2025 | Globenewswire

CSW Industrials to Acquire Aspen Manufacturing for $313.5 Million

CSW Industrials has announced a definitive agreement to acquire Aspen Manufacturing for $313.5 million in cash. The acquisition, aimed at expanding CSWI's product portfolio in the HVAC/R market, aligns with the company's strategic objectives of leveraging distribution channels and increasing market share. Aspen Manufacturing is a leading manufacturer of evaporative coils and air handlers, with products engineered and assembled in the U.S. The deal is valued at approximately 11x Aspen's estimated 2024 adjusted EBITDA of $28.5 million, and it is expected to be accretive to CSWI's EPS and EBITDA. CSWI plans to fund the transaction using cash on hand and debt from its existing credit facility. The acquisition also positions Aspen to better meet demands associated with the refrigerant transition in the HVAC/R industry. Closing of the deal is subject to customary conditions, including regulatory approvals under the Hart-Scott-Rodino Antitrust Improvements Act.

Sectors

  • HVAC/R (Heating, Ventilation, Air Conditioning, and Refrigeration)
  • Industrial Manufacturing

Geography

  • United States – Both CSW Industrials and Aspen Manufacturing operate and manufacture products primarily in the United States.

Industry

  • HVAC/R (Heating, Ventilation, Air Conditioning, and Refrigeration) – The acquisition involves companies operating within the HVAC/R industry, focusing on products like evaporative coils and air handlers.
  • Industrial Manufacturing – CSW Industrials and Aspen Manufacturing are involved in industrial manufacturing, producing components essential for HVAC/R systems.

Financials

  • $313.5 Million – Deal price for the acquisition of Aspen Manufacturing by CSW Industrials.
  • 11x EBITDA – The valuation multiple based on Aspen Manufacturing's estimated 2024 adjusted EBITDA.
  • $28.5 Million – Aspen Manufacturing's estimated 2024 adjusted EBITDA.
  • $122.4 Million – Aspen Manufacturing's estimated 2024 revenues.

Participants

NameRoleTypeDescription
CSW IndustrialsAcquirerCompanyA diversified industrial growth company involved in HVAC/R, plumbing, electrical, and other industrial sectors.
Aspen ManufacturingTarget CompanyCompanyA leading manufacturer of evaporative coils and air handlers, based in Humble, Texas.
Joseph B. ArmesChairman, President, and CEO of CSW IndustrialsPersonExecutive leading the acquisition strategy for CSW Industrials.
Jeff UnderwoodSenior Vice President of CSWI and General Manager, Contractor SolutionsPersonExecutive involved in the integration and strategic growth of acquisitions for CSW Industrials.