Commercial roofing company Carlisle Companies Inc ( CSL ) has entered into a definitive agreement to acquire MTL Holdings from GreyLion Partners, a U.S. private equity firm. 

MTL provides pre-fabricated edge metal for commercial roofing systems. Under the terms of the agreement, 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 8.7x on MTL’s adjusted EBITDA for the twelve months ending February 29, 2024.

MTL’s portfolio includes pre-fabricated edge metal products under the brands of Metal-Era and Hickman. It 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 about $13 million within the first three years and be approximately $0.60 accretive to adjusted EPS in the first full fiscal year.

The transaction is expected to close in the second quarter of 2024. Carlisle held $576.7 million in cash and equivalents as of December 31, 2023.

Price Action: CSL shares closed lower by 1.17% at $367.14 on Monday.

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