Carlisle Acquires EPS Insulation Manufacturer Plasti-Fab for $259 million

On October 17, 2024, Carlisle Companies Incorporated announced a definitive agreement to acquire the expanded polystyrene (EPS) insulation business of PFB Holdco, Inc., which includes the Plasti-Fab and Insulspan brands (together referred to as "Plasti-Fab"). PFB Holdco is a portfolio company of The Riverside Company. Plasti-Fab is a leading provider of EPS insulation products, serving markets in Canada and the Midwestern United States. The deal, valued at $259.5 million in cash, reflects a purchase price that is 6.7 times the adjusted EBITDA for the 12 months ending August 31, 2024, including anticipated cost synergies.

Headquartered in Calgary, Alberta, Plasti-Fab operates eight manufacturing facilities in Canada and three in the U.S., supplying insulation products for commercial, residential, and infrastructure construction projects. For the year ending August 31, 2024, Plasti-Fab reported $109 million in revenue.

This acquisition aligns with Carlisle’s Vision 2030 strategy, which focuses on mergers and acquisitions (M&A) as a growth driver. The deal fulfills Carlisle’s key M&A objectives: it brings an embedded organic growth opportunity with Plasti-Fab’s strong 10-year growth record, identifies cost synergies of $14 million largely through Plasti-Fab’s vertically integrated polystyrene resin manufacturing, and strengthens Carlisle’s management team for future growth within its Carlisle Weatherproofing Technologies unit. Carlisle plans to integrate Plasti-Fab using its well-established M&A playbook, which has a proven track record of successful integration.

Chris Koch, Chair, President, and CEO of Carlisle, emphasized the strategic importance of this acquisition. "The acquisition of Plasti-Fab brings vertically integrated polystyrene capabilities to our Insulfoam EPS business, enhances our retail channel, and addresses key geographic gaps in the U.S. and Canada," Koch said. He added that the deal aligns with Vision 2030 and Carlisle's strategic pivot toward becoming a pure-play building products company, emphasizing innovation and synergies through M&A. Koch expressed confidence that Carlisle would create significant value for stakeholders by leveraging the Carlisle Operating System across the Plasti-Fab business.

The acquisition is expected to close in the fourth quarter of 2024, pending customary closing conditions.

Carlisle Companies Incorporated is a prominent provider of innovative building envelope products and solutions designed for more energy-efficient structures. Through its building products divisions—Carlisle Construction Materials (CCM) and Carlisle Weatherproofing Technologies (CWT)—along with its portfolio of leading brands, Carlisle offers cutting-edge, labor-saving, and environmentally sustainable products and solutions to its customers, all part of the Carlisle Experience.

The company is dedicated to delivering exceptional shareholder returns while maintaining a balanced approach to capital deployment, which includes investments in its businesses, strategic acquisitions, share repurchases, and ongoing dividend increases. Committed to continuous improvement through the Carlisle Operating System (COS), Carlisle has set an ambitious goal of achieving net-zero greenhouse gas emissions by 2050.