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CLEVELAND - The Riverside Company, a global private equity firm, has reached a definitive agreement to sell two business units of PFB Corporation to Carlisle Companies Incorporated (NYSE: NYSE:CSL (OTC:CSLLY)) for approximately $260 million. The transaction, involving the Plasti-Fab and Insulspan divisions, is anticipated to be finalized in the fourth quarter of 2024.
PFB Corporation, headquartered in Calgary, Alberta, specializes in the production of Expanded Polystyrene (EPS)-based insulation products for the North American market. Its Plasti-Fab division, with eight facilities in Canada and three in the Midwestern United States, offers a comprehensive range of EPS building materials. These include roofing and wall panels, insulated concrete forms, and geofoam blocks used in various infrastructure projects. The Insulspan unit focuses on the design and manufacture of Structural Insulated Panels (SIPs) for residential and commercial buildings, aiming to reduce construction costs and enhance energy efficiency.
The sale will not include PFB's Custom Homes Group subsidiary, which will continue its operations post-transaction. Since Riverside's acquisition of PFB in December 2021, the company has seen significant growth, with earnings more than doubling and enterprise value tripling under Riverside's ownership. This growth is attributed to strategic expansions in distribution, investments in automation, and increased manufacturing capacity.
Robert Graham, CEO of PFB, expressed gratitude for Riverside's support and the PFB team's dedication to excellence. He also noted the strategic fit of PFB's insulation products business with Carlisle's portfolio. Sean Ozbolt, Managing Partner at Riverside, echoed these sentiments, highlighting the successful partnership with PFB's leadership.
PFB was notable for being the first Riverside company to collaborate with Ownership Works, a non-profit promoting broad-based employee ownership within private equity portfolio companies. Financial advisory for the transaction was provided by Houlihan Lokey (NYSE:HLI), with legal counsel from Paul Hastings and Blakes.
The Riverside Company, founded in 1988, has a history of investing in businesses valued at up to $400 million and has made over 1,000 investments to date. The firm's portfolios include more than 140 companies internationally.
This news article is based on a press release statement from The Riverside Company.
In other recent news, Carlisle Companies Incorporated has maintained a strong financial performance, with an 11% sales growth in Q2 2024, reaching $1.5 billion, and an adjusted earnings per share increase of 33% to $6.24. The company raised its full-year 2024 outlook, expecting around 12% revenue growth. Carlisle announced the acquisition of Plasti-Fab, a manufacturer specializing in Expanded Polystyrene Insulation, for $259.5 million. The acquisition aligns with Carlisle's Vision 2030 strategy and is expected to enhance the company's earnings per share by an estimated $0.30 in fiscal year 2025. Loop Capital maintained its Buy rating on Carlisle's shares, citing the Plasti-Fab acquisition as strategically and financially beneficial. Baird and Oppenheimer have also shown confidence in Carlisle's financial health, maintaining their Outperform ratings and raising the company's stock price targets. These are the latest developments in the company's ongoing growth strategy and commitment to shareholder value.
InvestingPro Insights
The acquisition of PFB Corporation's business units by Carlisle Companies Incorporated (NYSE: CSL) for $260 million aligns well with Carlisle's strong financial position and growth strategy. According to InvestingPro data, Carlisle boasts a market capitalization of $21.73 billion and has demonstrated impressive revenue growth, with quarterly revenue increasing by 10.99% in Q2 2024.
InvestingPro Tips reveal that Carlisle has maintained dividend payments for 54 consecutive years and has raised its dividend for 31 consecutive years. This consistent dividend history suggests a stable financial foundation, which could support the integration of PFB's Plasti-Fab and Insulspan divisions into Carlisle's operations.
Moreover, Carlisle's management has been aggressively buying back shares, indicating confidence in the company's future prospects. This strategic move, combined with the acquisition, may contribute to enhanced shareholder value.
For investors seeking a deeper understanding of Carlisle's financial health and growth potential, InvestingPro offers 13 additional tips that could provide valuable insights into the company's performance and outlook.
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