Carlisle Companies, a construction-products supplier, recently rejected an informal takeover proposal from Irish insulation and construction products company Kingspan Group Plc. Despite turning down the initial offer, Carlisle indicated it would be open to reviewing a more attractive proposal to create a combined entity with a market value of nearly $30 billion. Kingspan's approach to Carlisle was made in recent months. This news caused Carlisle's stock to experience its most significant jump in over four years.
Carlisle has been actively involved in its own acquisition strategy. In March 2024, the company announced a definitive agreement to acquire MTL Holdings from GreyLion Partners for $410 million in cash. This acquisition is expected to close in the second quarter of 2024 and represents an 8.7x multiple on MTL's adjusted EBITDA for the twelve months ending February 2024, inclusive of run-rate cost synergies and net of a $40 million tax step-up benefit.
Previously, in July 2021, Carlisle acquired Henry Company from American Securities LLC for $1.575 billion in cash. Henry Company is a leading provider of building envelope systems, generating $511 million in revenue and $119 million in adjusted EBITDA for the twelve months ending May 31, 2021. This acquisition significantly strengthened Carlisle's presence in both commercial and residential construction, aligned with its Vision 2025 strategy, and was expected to be accretive to adjusted EPS by over $1.25 in the first full fiscal year, with projected pre-tax cost synergies of approximately $30 million by 2025.
