Carlisle Companies to Acquire Plasti-Fab, a Canadian Based Vertically Integrated Manufacturer of Expanded Polystyrene Insulation Products
In This Article:
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Acquisition is consistent with Vision 2030 strategy to acquire superior building envelope products and solutions within Carlisle’s existing core
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Track record of above market growth in the expanded polystyrene market driven by tenured management team with deep experience
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Meaningful annual cost synergies of $14 million expected within the first three years
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Establishes Carlisle as an industry leader in the $1.5B North American expanded polystyrene insulation market, adding approximately $0.30 of adjusted earnings per share in 2025
SCOTTSDALE, Ariz., October 17, 2024--(BUSINESS WIRE)--Carlisle Companies Incorporated (NYSE:CSL) today announced that it has entered into a definitive agreement to acquire the expanded polystyrene "EPS" insulation segment of PFB Holdco, Inc., a portfolio company of The Riverside Company, composed of the Plasti-Fab and Insulspan brands (collectively referred to as "Plasti-Fab"). Plasti-Fab is a leading vertically integrated provider of EPS insulation products across Canada and the Midwestern United States. Under the terms of the agreement, Carlisle will purchase Plasti-Fab for $259.5 million in cash. The purchase price represents 6.7x on adjusted EBITDA for the twelve months ended August 31, 2024, inclusive of run-rate cost synergies.
Plasti-Fab is headquartered in Calgary, Alberta, and has eight manufacturing locations across Canada and three in the United States serving the commercial, residential, and infrastructure construction markets. Plasti-Fab generated revenue of $109 million for the twelve months ended August 31, 2024.
Consistent with Carlisle’s stated Vision 2030 strategy, the Plasti-Fab acquisition leverages Carlisle’s mergers and acquisitions "M&A" engine and fulfills its three core M&A tenets including an embedded organic growth story with a 10-year track record of above market growth, identified hard cost synergies of $14 million largely related to Plasti-Fab’s vertically integrated polystyrene resin manufacturing capability that can be consumed across Carlisle’s combined EPS insulation footprint, and a strong management team that will play a significant role in supporting Carlisle Weatherproofing Technologies’ growth strategy and integration success utilizing the Carlisle M&A playbook.
Chris Koch, Chair, President, and Chief Executive Officer, said, "The acquisition of Plasti-Fab delivers vertically integrated polystyrene capabilities to our Insulfoam EPS business while adding scale, supporting retail channel growth, and filling key geographic gaps in the U.S. and Canada. This acquisition is consistent with Vision 2030 and our intent to build on our strategic pivot to a pure-play building products company with increased investment in innovation and a continued emphasis on synergistic M&A guided by our repeatable M&A model. I am confident that we will create significant value for all our stakeholders as we leverage the Carlisle Operating System across the Plasti-Fab business."