Dallas-based CSW Industrials is acquiring Humble, Texas-based Aspen Manufacturing for roughly $313.5 million in cash.
CSWI is a manufacturer and supplier of pre-engineered and custom architectural building components and firestopping products specified by architects, engineers, and contractors for commercial buildings.
“This acquisition will allow CSWI to expand our existing HVAC/R product portfolio with an innovative portfolio of high-caliber evaporator coils and air handlers, while building on our existing HVAC/R end market leadership position,” Joseph B. Armes, chairman, president, and CEO of CSW Industrials, said in a statement. “With our market knowledge and investment in people, systems, and processes, CSWI is uniquely positioned to accelerate Aspen’s growth strategy. This acquisition will enable us to continue driving above market, profitable growth, and deliver value to our shareholders.”
CSWI said the proposed purchase price is roughly 11 times Aspen Manufacturing’s estimated 2024 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $28.5 million.
The company said it anticipates funding the acquisition via a combination of cash on hand and debt under its existing $500 million credit facility, with closing expected to happen in the first quarter of CSWI’s 2026 fiscal year.
Aspen had 2024 revenues of $122.4M
CSWI said that Aspen Manufacturing, with estimated 2024 revenues of $122.4 million, is one of the largest independent evaporator coil and air handler manufacturers for the HVAC/R industry and is a leader in product quality and indoor comfort. All of Aspen’s products are designed, engineered, and assembled in the United States.
Aspen’s current product line includes a range of high-quality residential and light commercial evaporator coils, blowers, and air handling units for single-family, multi-family, and manufactured homes.
“I’m eagerly looking forward to Aspen joining the RectorSeal family and our lineup of high-quality HVAC/R, plumbing and electrical products,” said Jeff Underwood, SVP of CSWI and general manager, contractor solutions. “I’ve had a chance to form strong relationships with Aspen’s leadership team over the years and know that the team shares our values on how to treat customers and team members. The combined organization will allow us to better serve distributors and contractors with segment-leading products.”
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