Motors & Armatures to sell parts division to CSW Industrials for $650m

NEW YORK - Motors & Armatures (MARS), a portfolio company of Platinum Equity, announced Wednesday it has signed a definitive agreement to sell its parts division to CSW Industrials, Inc. (NYSE:CSWI) for $650 million in cash, with a potential additional earn-out of up to $20 million based on post-closing revenue targets.

The transaction, which excludes MARS’ equipment distribution division, is expected to close before the end of 2025, subject to regulatory approval and other conditions. The equipment division will continue to operate as Heat Controller under Platinum Equity’s ownership. CSW Industrials approaches this acquisition from a position of financial strength, with a comfortable debt level and current ratio of 2.86, indicating strong liquidity. InvestingPro analysis reveals 10+ additional key metrics and insights available for subscribers.

MARS Parts specializes in motors, capacitors, and other components used for HVAC/R repairs and replacements. The Hauppauge, New York-based company has undergone significant operational changes since Platinum Equity acquired it in July 2024, including expanding into new product categories and completing the acquisition of Global, the Source. The acquisition aligns with CSW Industrials’ growth strategy, which has helped maintain its six-year streak of consecutive dividend increases, as noted in InvestingPro’s comprehensive analysis.

Philip Windham, who will remain CEO of Heat Controller following the transaction, said: "We’re proud of the progress we’ve made and grateful to the talented team in our parts division."

According to the company, MARS Parts and Heat Controller have operated largely independently, which should facilitate a smooth transition. Heat Controller will continue to offer residential and commercial heating, cooling, and dehumidification equipment under the Comfort-Aire and Century brands.

Jacob Kotzubei, Co-President of Platinum Equity, stated the transaction "allows us to realize part of that value while finding a natural home for the parts division at CSW where it can continue to thrive."

The announcement was made in a press release issued by the company.

In other recent news, CSW Industrials has signed a definitive agreement to acquire Motors & Armatures Parts (MARS Parts) for $650 million in cash, with an additional potential earn-out of $20 million based on revenue targets. This acquisition, expected to close in the fiscal third quarter of 2026, values MARS Parts at approximately 12.5 times its trailing twelve-month adjusted EBITDA of $51.8 million, or 10.5 times when considering identified synergies. In personnel developments, CSW Industrials announced the promotion of Fang Wang to vice president and chief accounting officer. Wang will now serve as the principal accounting officer, while James Perry will continue as the principal financial officer. Additionally, the company declared a regular quarterly cash dividend of $0.27 per share, payable on August 8, 2025, to shareholders of record as of July 25, 2025. These developments highlight CSW Industrials’ strategic moves and executive changes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.