Carlisle Cos. Inc. will acquire Hillsboro, Texas-based expanded polystyrene insulation manufacturer ThermaFoam LCC to add retail channels in the southern United States.
Founded in 1978, ThermaFoam serves the commercial, residential and infrastructure construction markets with roof insulation and structural fill materials for a range of applications from foundations and slope stabilization to retaining walls and stadium seating.
Terms of the deal weren't disclosed.
ThermaFoam's principal markets are regional and mostly within a 500-mile radius of Dallas/Fort Worth area.
The pending transaction comes on the heels of Carlisle's purchase of Calgary, Alberta-based EPS insulation maker Plasti-Fab and its 11 EPS plants in Canada and the U.S., for $259.5 million in cash.
The Plasti-fab deal, which closed Dec. 18, not only expanded retail channels but added resin manufacturing capabilities that will lead to cost savings.
Carlisle officials said the Plasti-Fab purchase will save $14 million in its first three years because the acquired company's EPS resin can be used across the manufacturing footprint.
The definitive agreement to acquire ThermaFoam is consistent with Carlisle's Vision 2030 strategy to pivot to a pure play building products company with increased investment in innovation and synergistic mergers and acquisitions, according to Chris Koch, chair, president and CEO of Scottsdale, Ariz.-based Carlisle.
Before the 2017 pivot, Carlisle had a diversified industrial portfolio.
"The acquisition of ThermaFoam builds on our recently completed acquisition of Plasti-Fab and leverages the vertically integrated expanded polystyrene capabilities of our EPS business while adding scale, supporting retail channel growth, and providing valuable geographic coverage in Texas and the South Central United States," Koch said in a news release.
The acquisition is expected to close in the first quarter of 2025.
Carlisle's other building products businesses include Insulfoam, a subsidiary that makes EPS rigid foam insulation, Carlisle Construction Materials and Carlisle Weatherproofing Technologies.
Carlisle officials put the size of the North American EPS insulation market at $1.5 billion.