Commercial Roofing Company Carlisle Companies Inc CSL has entered into a definitive agreement to acquire MTL Holdings from GreyLion Partners, a US private equity firm.
MTL provides prefabricated metal edging for commercial roofing systems. Under the terms of the deal, Carlisle will purchase MTL for $410 million in cash.
Carlisle noted that the acquisition is consistent with its Vision 2030 strategy of acquiring superior building envelope products and solutions within the existing core.
The purchase price represents 8.7 times MTL’s adjusted EBITDA for the twelve months ended February 29, 2024.
MTL’s portfolio includes prefabricated metal products under the Metal-Era and Hickman brands. Also includes non-insulated aluminum composite material (ACM) architectural wall panels under the Citadel brand.
MTL generated revenue of $132 million for the twelve months ended February 29, 2024.
The acquisition is expected to generate cost synergies of approximately $13 million within the first three years and be accretive to adjusted EPS by approximately $0.60 in the first full fiscal year.
The transaction is expected to close in the second quarter of 2024. Carlisle had $576.7 million in cash and cash equivalents as of Dec. 31, 2023.
Price action: CSL shares closed 1.17% lower at $367.14 on Monday.
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