Commercial Roofing Company Carlisle Seals The Deal: Acquires Metal-Era & Hickman Parent MTL For $410M
Portfolio Pulse from Shivani Kumaresan
Carlisle Companies Inc (NYSE:CSL) has agreed to acquire MTL Holdings, which includes brands Metal-Era and Hickman, from GreyLion Partners for $410 million in cash. The acquisition aligns with Carlisle's Vision 2030 strategy and is expected to be $0.60 accretive to adjusted EPS in the first full fiscal year post-acquisition. MTL, known for its pre-fabricated edge metal products, generated $132 million in revenue for the twelve months ending February 29, 2024. The deal is expected to close in Q2 2024, with Carlisle anticipating $13 million in cost synergies within the first three years.
March 19, 2024 | 9:50 am
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POSITIVE IMPACT
Carlisle's acquisition of MTL Holdings for $410 million is expected to be accretive to adjusted EPS by $0.60 in the first full fiscal year, with anticipated cost synergies of $13 million within three years.
The acquisition is directly aligned with Carlisle's strategic goals and is financially accretive, indicating a positive short-term impact on CSL's stock price. The anticipated cost synergies and EPS accretion suggest operational efficiency and profitability improvements. However, the slight decline in CSL shares post-announcement reflects market digestion of the news, which may temper immediate stock price gains.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100