Benzinga | Dec 15, 2021 02:05PM EST

CSW Industrials Acquires Shoemaker Manufacturing For $41.3M

* CSW Industrials Inc (NASDAQ:CSWI) has acquired Washington-based Shoemaker Manufacturing for $41.3 million. The purchase price is ~8.5 times Shoemaker's expected FY21 adjusted EBITDA.

* The terms of the acquisition provide for additional contingent consideration of up to $2.0 million based on Shoemaker achieving certain financial performance milestones in Q1 of calendar 2022.

* This acquisition expands CSW Industrials' HVAC/R product offering, with customizable grilles, registers, and diffusers (GRD) for commercial and residential markets and regional exposure to the northwest U.S.

* With 180,000 square feet of domestic manufacturing, the Shoemaker acquisition provides CSW Industrials additional capacity to manage its global supply base.

* The company expects the transaction to be accretive to EPS in the first full year of ownership.

* CSW Industrials funded the deal with a combination of cash on hand, borrowings under its existing $400 million revolving credit facility, and ~25,500 shares of common stock issued to the sellers.

* The company held cash and equivalents of $17.33 million as of September 30, 2021.

* Price Action: CSWI shares are trading higher by 2.07% at $116.13 on the last check Wednesday.