CSW Industrials Acquires Shoemaker Manufacturing For $41.3M

CSW Industrials Inc 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.