Acquisition News
Carlisle Companies Announces Purchase of MTL Holdings
The acquisition of the edge metal and non-insulated architectural wall systems manufacturer follows Carlisle’s Vision 2030 playbook
Carlisle says MTL’s track record of above-market growth for pre-fabricated edge metal is driven by the same strong trends seen in its existing core businesses. Cost synergies of $13 million are expected within the first three years after the deal closes.
— Image courtesy of MTL Holdings; Bryan Gottlieb for RC
Carlisle Companies Inc. announced last week that it had entered into a definitive agreement to acquire MTL Holdings, a provider of pre-fabricated edge metal for commercial roofing systems, from GreyLion Partners, a private equity firm.
The terms of the deal, announced in a March 18 news release, include Carlisle purchasing MTL for $410 million in cash. The purchase price represents an 8.7-time multiple on MTL’s adjusted EBITDA for the twelve months ending Feb. 29, 2024.
Carlisle said that MTL is widely recognized as a best-in-class provider of high-performance, pre-fabricated perimeter edge metal systems and non-insulated architectural metal wall systems for commercial, institutional, and industrial buildings.
Its portfolio comprises an assortment of complementary pre-fabricated edge metal products under the Metal-Era and Hickman flagship brands. MTL’s portfolio includes non-insulated aluminum composite material and architectural wall panels under the Citadel brand.
The company said its MTL acquisition helps establish Carlisle as “one of the industry’s most comprehensive providers of architectural metal products, including ‘roof-to-grass’ color coordinated metal building envelope solutions.”
MTL generated revenue of $132 million for the twelve months ended Feb. 29, 2024.
“The acquisition of MTL is consistent with Vision 2030 and our intent to build on our strategic pivot to a pure-play building products company with increased investment in innovation, a continued emphasis on synergistic M&A, attracting and retaining top talent, and fulfilling our sustainability commitments,” said Carlisle’s CEO, Chris Koch.
“By acquiring MTL and leveraging the Carlisle Operating System across the business, I am confident that we will create significant value for all our stakeholders. We look forward to welcoming Tony Mallinger and MTL’s talented team to Carlisle,” Koch added.
The acquisition is expected to generate cost synergies of approximately $13 million within the first three years and be approximately $0.60 accretive to adjusted EPS in the first full fiscal year. The deal is expected to close during the second quarter of this year.
Dorsey & Whitney LLP served as legal counsel to Carlisle, William Blair & Company LLC served as the exclusive financial advisor, and Latham & Watkins LLP served as legal counsel to MTL.
For more information, visit carlisle.com.
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