Carlisle Companies Inc Acquires MTL Holdings to Expand Building Envelope Product Portfolio
Commercial roofing company Carlisle Companies Inc (NYSE: CSL) has recently announced its acquisition of MTL Holdings from GreyLion Partners, a U.S. private equity firm. This strategic move is part of Carlisle’s Vision 2030 strategy to enhance its building envelope product offerings.
MTL is a provider of pre-fabricated edge metal for commercial roofing systems, with a portfolio that includes products under the brands of Metal-Era and Hickman, as well as non-insulated aluminum composite material (ACM) architectural wall panels under the Citadel brand. The acquisition of MTL will allow Carlisle to further strengthen its position in the commercial roofing market and expand its product line.
Under the terms of the agreement, Carlisle will acquire MTL for $410 million in cash, representing 8.7x MTL’s adjusted EBITDA for the twelve months ending February 29, 2024. MTL generated revenue of $132 million for the same period.
The acquisition is expected to generate cost synergies of about $13 million within the first three years and be approximately $0.60 accretive to adjusted EPS in the first full fiscal year. The transaction is anticipated to close in the second quarter of 2024.
Carlisle Companies Inc had $576.7 million in cash and equivalents as of December 31, 2023, providing the company with the financial flexibility to pursue strategic acquisitions like the one with MTL Holdings.
The news of the acquisition had a minor impact on CSL’s stock price, with shares closing lower by 1.17% at $367.14 on Monday. However, investors are optimistic about the long-term benefits of the acquisition and the potential for growth in Carlisle’s building envelope product segment.
Overall, the acquisition of MTL Holdings is a strategic move by Carlisle Companies Inc to expand its product portfolio and strengthen its position in the commercial roofing market. With the transaction expected to close in the near future, Carlisle is poised to benefit from the synergies and growth opportunities that come with this strategic acquisition.
