The 2020 Mid-Year Economic Update_long

Carlisle Cos. to Acquire Building Envelope Systems Provider

Carlisle is paying $1.6 billion to acquire Henry Co. from the private equity firm American Securities LLC.
Carlisle Cos

Carlisle Cos. Inc. (NYSE:CSL), Scottsdale, Arizona, has agreed to acquire o acquire Henry Co., an El Segundo, California-based provider of building envelope systems, from affiliates of the private equity firm American Securities LLC, for $1.6 billion. The purchase price represents 10.5x Henry’s adjusted EBITDA for the 12 months ending May 31, 2021, when including run-rate cost synergies.

Henry serves customers across both new construction and repair and restoration projects within the residential, light commercial and commercial end-markets. The generated revenue of $511 million and adjusted EBITDA of $119 million, representing an adjusted EBITDA margin of 23%, for the twelve months ending May 31, 2021.

“The acquisition of Henry, together with the announced divestiture of our brake and friction business in May, marks another meaningful evolution of our portfolio,” said Chris Koch, chairman, president and CEO. “These portfolio moves are consistent with our stated strategy to invest in CCM and diversify into a broader building products platform with a focus on the building envelope. More than half of Henry’s revenue is derived from products that improve energy efficiency, elevating Carlisle’s existing ESG narrative. By acquiring Henry and leveraging the Carlisle Experience across the business, I am confident that we will create significant value for all our stakeholders.”

Carlisle said the acquisition is “expected to generate pre-tax cost synergies of approximately $30 million by 2025. Additional revenue synergies from cross-selling a broader product portfolio through Carlisle’s existing relationships and sales channels are also expected. The transaction is expected to be approximately $1.25+ accretive to adjusted EPS in the first full fiscal year.”

The acquisition is expected to close in the third quarter.

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