CSW Industrials Completes Previously Announced Accretive, Complementary, and Synergistic Acquisition of Motors & Armatures Parts

Core Viewpoint - CSW Industrials, Inc. has successfully completed the acquisition of Motors & Armatures Parts (MARS Parts) for approximately $650 million in cash, enhancing its HVAC/R product portfolio and aligning with its strategic growth objectives [1][2][4]. Group 1: Acquisition Details - The acquisition price represents 10.4x pro-forma trailing twelve-month (TTM) EBITDA adjusted for identified synergies and approximately 12.4x MARS Parts' estimated adjusted TTM EBITDA of $52.3 million [1]. - CSW funded the transaction through a five-year Syndicated Term Loan A for $600 million and borrowings under a $700 million revolving credit facility, while maintaining sufficient liquidity and a strong balance sheet [4]. Group 2: Strategic Rationale - This acquisition expands CSW's product offerings in the profitable HVAC/R market, adding motors, capacitors, and other electrical components, which are essential for HVAC/R repairs and replacements [2][3]. - MARS Parts is one of the largest providers of HVAC/R parts in North America, with a focus on repair rather than replacement, complementing CSW's existing Contractor Solutions business [3]. Group 3: Leadership Commentary - Joseph B. Armes, Chairman, President, and CEO of CSW Industrials, expressed optimism about the acquisition, highlighting the potential for above-market growth and diversification into additional repair solutions [4].