Carlisle Companies To Acquire Henry Company For ~$1.58B

Carlisle Companies, Inc. CSL agreed to acquire Henry Company, a provider of building envelope systems, from affiliates of American Securities LLC, for $1.575 billion in cash.
The company expects this transaction to be immediately accretive to its growth outlook, EBITDA margin and to add $1.25+ of adjusted EPS in 2022. It expects cost synergies of $30 million (or 7% of sales) by 2025.
For the twelve months ending May 31, 2021, Henry generated revenue of $511 million and adjusted EBITDA of $119 million, representing an adjusted EBITDA margin of 23%.
The purchase price represents 10.5x Henry's adjusted EBITDA for the twelve months ending May 31, 2021, including run-rate cost synergies.
Carlisle reported cash and cash equivalents of $767.2 million as of March 31, 2021.
The acquisition is consistent with Vision 2025 to simplify its portfolio and strategically build scale with synergistic acquisitions to achieve $15 of earnings per share, the company said.
Henry augments Carlisle's Construction Materials growth and efforts in commercial construction and increases its presence in residential construction in North America.
It expects the acquisition to close in the third quarter of 2021.
Price Action: CSL shares are trading lower by 1.19% at $191.28 the last check Monday.