CSW Industrials agrees to acquire Motors & Armatures for $650M in cash

CSW Industrials (CSW) announced the execution of a definitive agreement under which CSW will acquire Motors & Armatures Parts for $650M in cash, subject to customary closing adjustments. The transaction also includes an earn-out to pay up to $20 million based on the achievement of revenue targets in the year after closing. The proposed cash purchase price, excluding earn-out, represents 10.5x pro-forma TTM EBITDA adjusted for identified synergies and is approximately 12.5x MARS Parts’ estimated adjusted TTM EBITDA of $51.8 million. CSW anticipates funding the transaction with a combination of a Syndicated Term Loan A and borrowings under its existing $700 million revolving credit facility, with closing expected to occur in the third quarter of CSW’s 2026 fiscal year following the satisfaction of customary closing conditions, including the expiration or termination of any waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.