Derek Soderberg

Derek Soderbergh

William Dezellem

A. Carolina Jolly

- **CSW Industrials** has entered into a definitive agreement to acquire **Motors & Armatures Parts (MARS Parts)** for **$650 million** in cash, with a potential earn-out of up to **$20 million** based on revenue targets.  **[918251_137c19df8bb744358e02302c686f9bb5_1]** 
- The acquisition is valued at approximately **10.5x** identified synergies-adjusted Trailing Twelve Month (TTM) EBITDA or **12.5x** TTM adjusted EBITDA at close, based on MARS Parts' estimated adjusted TTM EBITDA of **$51.8 million**.  **[918251_137c19df8bb744358e02302c686f9bb5_0]** **[918251_137c19df8bb744358e02302c686f9bb5_1]** 
- This transaction is expected to be **immediately accretive to CSW's EPS and EBITDA**, with the acquired business projected to achieve an EBITDA margin run rate of at least **30%** within 12 months of closing.  **[918251_137c19df8bb744358e02302c686f9bb5_0]** **[918251_137c19df8bb744358e02302c686f9bb5_1]** 
- The acquisition expands **CSW's** product portfolio in the **HVAC/R** end market, strategically complementing its Contractor Solutions business by adding products focused on repair.  **[918251_137c19df8bb744358e02302c686f9bb5_0]** **[918251_137c19df8bb744358e02302c686f9bb5_1]** 
- **CSW** plans to fund the acquisition using a combination of a Syndicated Term Loan A and borrowings under its existing **$700 million** revolving credit facility, aiming to maintain a leverage target of approximately **2.0x EBITDA** upon closing.  **[918251_137c19df8bb744358e02302c686f9bb5_1]** **[918251_137c19df8bb744358e02302c686f9bb5_2]**

MOTORCAR PARTS OF AMERICA (MPAA)