CSW Industrials Deploys Over $26.5 Million on Acquisitions Within the Specialized Reliability Solutions Segment, Diversifying Our End Markets

Core Insights - CSW Industrials, Inc. announced the acquisition of Hydrotex Holdings, Inc. and ProAction Fluids for over $26.5 million, demonstrating its commitment to innovation and market diversification within the Specialized Reliability Solutions segment [2][3] Group 1: Acquisitions - The acquisitions of Hydrotex and ProAction Fluids are aimed at enhancing the product portfolio and entering new end markets with faster-growing products [3] - Hydrotex brings high-performance lubricants that serve multiple industries, including industrial, manufacturing, agriculture, and transportation, thereby diversifying the company's end market offerings [4] - ProAction Fluids adds complementary products that provide superior mud management solutions for horizontal directional drilling, enhancing the company's capabilities in infrastructure build-out [4] Group 2: Financial Aspects - The combined valuation of the acquisitions is approximately 5.0 times the trailing twelve-months' adjusted EBITDA, adjusted for expected synergies within the first year post-acquisition [7] - The acquisitions are expected to be accretive to earnings per share in the first full year of ownership [7] - Since going public in October 2015, CSW Industrials has made cumulative acquisition capital investments totaling $1.7 billion [7] Group 3: Strategic Goals - The company aims to solidify its leadership position in niche specialty lubricants and fluids through these acquisitions [3] - The investment is part of a broader strategy to expand the breadth and depth of products within the Specialized Reliability Solutions segment [3]