DALLAS, Dec. 17, 2015 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (“CSW Industrials”) (Nasdaq:CSWI), a diversified industrial growth company with well-established, scalable platforms and domain expertise across three segments: Industrial Products; Coatings, Sealants & Adhesives; and Specialty Chemicals, today announced that it has acquired AC Leak Freeze, a leading product line of OEM-approved air conditioning and refrigerant leak repair solutions, for $16.75 million in cash. CSW Industrials financed the transaction with debt from its recently announced $250 million revolving credit facility.
Manufactured in Baltimore, Maryland, AC Leak Freeze products utilize a proprietary, polymer-free technology and provide a safe, easy, and reliable leak repair solution for refrigeration, residential air conditioning and commercial air conditioning repair. In 2015, AC Leak Freeze generated adjusted EBITDA of approximately $2.3 million. Following the acquisition, AC Leak Freeze will become part of the CSW Industrials’ Specialty Chemicals segment.
Christopher J. Mudd, President & Chief Operating Officer of CSW Industrials, said “The acquisition of AC Leak Freeze complements our product portfolio and enhances our specialty chemical offering in the HVAC market. This reflects our continued emphasis to build CSWI’s capabilities through the strategic acquisition of product lines in markets we currently serve.” Mudd continued, “Through our Company-wide distribution capabilities we can successfully leverage the proprietary technologies offered by AC Leak Freeze, reach a broader audience and drive enhanced product growth.”
About CSW Industrials
CSW Industrials is a diversified industrial growth company with well-established, scalable platforms and domain expertise across three segments: Industrial Products; Coatings, Sealants & Adhesives; and Specialty Chemicals. CSW Industrials’ broad portfolio of leading products provides performance optimizing solutions to its customers. CSW Industrials’ products include mechanical products for heating, ventilation and air conditioning (“HVAC”) and refrigeration applications, coatings and sealants and high performance specialty lubricants. Markets that CSW Industrials serves include plumbing, industrial, HVAC, energy, rail, architecturally-specified building products, mining and other general industrial markets.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions and beliefs as of the date of this release. Forward-looking statements can often be identified by words such as “plans,” "expects," "will,” similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding growth opportunities and future results of operations of CSW Industrials, including as the result of acquiring AC Leak Freeze. They are not guarantees of future results and are subject to risks, uncertainties and assumptions, including factors set forth in CSW Industrials’ filings with the Securities and Exchange Commission, including CSW Industrials’ information statement filed as an exhibit to CSW Industrials’ Form 10, that could cause actual results to differ materially from those expressed in any forward-looking statement.
Non-GAAP Financial Information
For reconciliation of adjusted EBITDA to the most comparable GAAP measure, see the AC Leak Freeze Acquisition presentation on the Investors – Events & Presentations page on the Company’s website at www.cswindustrials.com.
Investor contact: Michael Callahan, ICR (203) 682-8311 Michael.Callahan@icrinc.com