Carlisle Companies Incorporated CSL recently announced that it has signed a definitive deal to acquire ThermaFoam. The financial terms of the transaction have been kept under wraps. The latest deal is a testimony to Carlisle’s intention of becoming a pure-play building products company.
Based in Dallas/Fort Worth, TX, ThermaFoam is engaged in manufacturing and fabricating molded polystyrene. The company caters to the commercial, residential and infrastructure construction sectors under its ThermaFoam and PowerFoam brands.
CSL’s Acquisition Rationale
The acquisition is in line with Carlisle’s Vision 2030 strategy and policy of acquiring businesses to strengthen its building envelope product portfolio. The buyout will enable the company to incorporate ThermaFoam’s vertically integrated polystyrene capabilities into its Insulfoam EPS business. This will enable Carlisle to expand its customer offerings and strengthen its position in Texas and the South-Central United States market.
The buyout is expected to be completed in the first quarter of 2025, conditioned on the fulfillment of certain customary closing conditions.
Other Notable Buyouts of CSL
Acquisitions made over time have been aiding Carlisle through the expansion of its product lines and market presence. In December 2024, the company completed the acquisition of the expanded polystyrene (EPS) insulation segment of PFB Holdco, Inc., comprising primarily the Plasti-Fab and Insulspan brands. The acquisition is in sync with Carlisle’s Vision 2030 strategy and policy of acquiring businesses to strengthen its building envelope product portfolio.
In May 2024, Carlisle completed the acquisition of MTL Holdings from the U.S. private equity firm, GreyLion Partners. The inclusion of MTL’s solid pre-fabricated edge metal products portfolio, supported by its strong designing and manufacturing capabilities, will enable CSL to expand its customer offerings and boost its architectural metals business. The acquisition of Polar Industries (November 2023) expanded its polystyrene and graphite polystyrene portfolio.
CSL’s Zacks Rank & Price Performance
Carlisle currently carries a Zacks Rank #3 (Hold). The company is benefiting from inventory normalization and growing re-roof activity in the construction sector. Driven by strength across its businesses, it anticipates revenues to increase 10% in 2024. The company’s shares have gained 20.6% against the industry’s 10.7% decline in the past year.
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However, lower volumes from a slowdown in the residential construction market are adversely affecting CSL. High-debt levels are added concerns for the company.
Stocks to Consider
Some better-ranked companies are discussed below.
Powell Industries POWL presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The company delivered a trailing four-quarter average earnings surprise of 57.5%. In the past 60 days, the Zacks Consensus Estimate for POWL’s fiscal 2025 earnings has increased 3.1%.
Federal Signal Corporation FSS presently carries a Zacks Rank #2 (Buy). FSS delivered a trailing four-quarter average earnings surprise of 11.8%.
In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2024 earnings has increased 3.1%.
RBC Bearings Incorporated RBC presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 2.5%.
In the past 60 days, the consensus estimate for RBC’s fiscal 2025 earnings has increased 0.5%.
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