CSWI - CSW Industrials acquires Shoemaker Manufacturing for $41.3M

CSW Industrials (NASDAQ:CSWI) has acquired Shoemaker Manufacturing for $41.3M, which is ~8.5 times Shoemaker’s expected adj. EBITDA in 2021. The transaction was funded using a combination of cash on hand, borrowings under CSWI's existing $400M revolving credit facility, and ~25,500 shares of common stock issued to the sellers. The deal also provides for additional contingent consideration of up to $2M based on Shoemaker achieving certain financial performance milestones in Q122. The strategic acquisition further expands CSWI's HVAC/R product offering, with customizable grilles, registers, and diffusers (GRD) for commercial and residential markets, and regional exposure to the northwest U.S. Based in Cle Elum, Washington, Shoemaker Manufacturing produces high-quality GRD, with ~55% and 45% of calendar 2021 sales serving residential and commercial applications, respectively. With 180,000 square feet of domestic manufacturing, the Shoemaker acquisition provides CSWI additional capacity to manage its global supply base. The acquisition is expected to be accretive to EPS

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CSW Industrials acquires Shoemaker Manufacturing for $41.3M