Scottsdale, Arizona – Carlisle Group had record first quarter earnings in its Construction Materials division thanks to its recent purchase of Accella Performance Materials.
Carlisle recently bought Accella Performance Materials, said ‘revenue performance met our expectations and integration activities are on track.’
The Accella business, formerly owned by Arsenal Capital Partners, is part of Carlisle’s Construction Materials division.
Record first quarter revenues at the division were ‘despite harsh winter conditions in much of the United States,’ according to an SEC filing.
Despite this, the division experienced a ‘year over year operating [profit] decline of $11 m. This was because of higher raw material and freight costs.’
In the first quarter of 2018 revenue of $598m was up $152 m. This is a 32.2% rise on the first quarter of 2017. The acquisition of Accella enhanced earnings by almost 27%, said Carlisle.
At $75.8 m for the first quarter of 2018, this was down compared with $80.7 m in the first quarter of 2017.
Over the rest of the year Carlisle expects revenues in its construction materials division will rise in the ‘low twenty percent range. This includes contributions from acquisitions. Ignoring the boost from acquisitions, revenue growth is likely to be ‘in the mid-single digits.’
As a whole, at $985m, the firm’s Q1 2018 revenue was up 27% compared with $774 m in the 2017 quarter.
At $94.7 m operating income for the 2018 period was up 5.8% on the 2017 quarter.
Chris Koch, president and CEO said: ‘We are pleased with Carlisle’s solid first quarter results in the face of the challenging raw materials environment. Accella remains on track for stated synergies.’
Carlisle group said that the Accella purchase was the largest acquisition in its history. It completed on 1 November 2017.
The final purchase price was $670.7m. The company said at the time that the purchase offered ‘an excellent adjacent opportunity into the attractive polyurethane market. This includes spray polyurethane foam, and liquid applied roofing.
In the last two months of 2017, Accella contributed net sales of $64 m to Carlisle. It also made an operating loss of $9m between 1 November and 31 December 2017. More details of the deal are available on p55-57 of Carlisle’s SEC 10K form for 2017.