CSW Industrials (CSWI) has strategically invested $30.3 million to acquire Dust Free, LP, Guardian Drain Lock, and Sure Grade Drain. This move is in line with CSWI’s commitment to enhance its product suite in the HVAC/R (Heating, Ventilation, Air Conditioning, and Refrigeration) and plumbing spheres, using its robust distribution channels and market strategy.
Investing in Air Quality
The lion’s share of the investment, $27.4 million, was channeled towards the acquisition of Dust Free, based on a valuation of 7.5 times Dust Free’s trailing twelve-month adjusted EBITDA. Dust Free specializes in Indoor Air Quality (IAQ) products, employing filtration, purification, and UV inactivation technologies to enhance air quality. The products are ozone-free and effectively deactivate indoor air pollutants, as confirmed by independent testing. The addition of Dust Free to CSWI’s portfolio signifies its ongoing commitment to improving customer health through innovative IAQ solutions.
Boosting Plumbing Solutions
The remaining $2.9 million of the investment was dedicated to the acquisition of Guardian Drain Lock and Sure Grade Drain, with an aim to bolster CSWI’s product line in the plumbing sector. Guardian Drain Lock offers tamper-proof drain solutions for commercial settings, designed to prevent clogs and maintain hygiene. On the other hand, the acquisition of Sure Grade Drain involves an intellectual property acquisition for an adjustable commercial drain product.
Long-term Shareholder Value and Market Position
These strategic acquisitions by CSWI are expected not only to contribute to its long-term shareholder value but also to consolidate its position in the HVAC/R market. By integrating Dust Free’s air purification and filtration technology, CSWI aims to increase market penetration and provide better health solutions to its customers. Similarly, the addition of Guardian Drain Lock and Sure Grade Drain strengthens CSWI’s position in the plumbing industry by offering innovative and efficient solutions.
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