© Reuters.
SCOTTSDALE, Ariz. – Carlisle Companies Incorporated (NYSE: (OTC:)) has announced the definitive agreement to purchase MTL Holdings, a leading provider of pre-fabricated edge metal for commercial roofing, from private equity firm GreyLion Partners.
The acquisition, valued at $410 million in cash, is a strategic move for Carlisle, aligning with its Vision 2030 strategy to bolster its portfolio with superior building envelope products.
MTL, renowned for its high-performance pre-fabricated perimeter edge metal systems and architectural wall panels, is expected to enhance Carlisle’s position in the $4 billion architectural metal segment. The transaction includes MTL’s flagship brands Metal-Era and Hickman, as well as Citadel, which offers non-insulated aluminum composite material (ACM) architectural wall panels.
Carlisle anticipates the acquisition will result in meaningful cost synergies, estimating approximately $13 million within the first three years post-acquisition. Additionally, the deal is expected to be accretive to Carlisle’s adjusted earnings per share (EPS) by about $0.60 in 2025.
Chris Koch, Chair, President, and CEO of Carlisle, expressed confidence that the acquisition would create significant value for stakeholders and is a testament to the company’s commitment to innovation and sustainable practices. The addition of MTL is also expected to contribute to Carlisle’s goal of achieving net-zero greenhouse gas emissions by 2050.
The transaction is subject to customary closing conditions and is expected to be finalized in the second quarter of 2024. Dorsey & Whitney LLP and William Blair & Company LLC provided legal counsel and financial advisory services to Carlisle, respectively, while Latham & Watkins LLP served as legal counsel to MTL.
This acquisition is based on a press release statement and the facts presented therein. It should be noted that forward-looking statements in the press release are subject to various uncertainties, and actual results may differ materially. Carlisle has not provided reconciliations for the non-GAAP financial measures due to the unpredictability of adjusted items.
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