CSW Industrials Deploys Over $26.5 Million on Acquisitions Within the Specialized Reliability Solutions Segment, Diversifying Our End Markets

Rhea-AI Summary

CSW Industrials (NYSE: CSW) announced on November 21, 2025 the deployment of over $26.5 million to acquire Hydrotex Holdings and ProAction Fluids within its Specialized Reliability Solutions segment. The combined transactions were valued at approximately 5.0x trailing twelve‑months adjusted EBITDA (after identified synergies) and are expected to be accretive to EPS in the first full year of ownership. CSW funded the deals with borrowings under its existing $700 million revolving credit facility. Management expects identified synergies to be achieved within 12 months post‑close, and said the acquisitions diversify end markets and add complementary specialty lubricants and HDD mud management products.

Positive

• Acquisition spend of $26.5M deployed
• Combined valuation ~5.0x trailing adjusted EBITDA
• Expected EPS accretion in first full year
• Synergies targeted within 12 months post‑close
• Adds diversification into multiple end markets

Negative

• Transactions funded via borrowings under $700M revolver
• Synergy delivery required within 12 months, creating execution risk
• No disclosed pro forma revenue or immediate revenue targets

Insights

Strategic M&A Expert

Acquisitions expand niche product set and diversify end markets; modest scale but strategically aligned.

CSW deployed over $26.5 million to buy Hydrotex and ProAction Fluids, adding specialty lubricants and a mud-management product for horizontal directional drilling. The purchases sit at ~5.0x trailing twelve‑months adjusted EBITDA after identified synergies, which indicates disciplined valuation assumptions for small strategic deals.

The transactions rely on integration to capture the stated synergies within 12 months; execution risk centers on distribution cross-selling and operational alignment. Monitor integration milestones, realized synergy amounts, and any revisions to the 12‑month timeline over the next 12 months.

Financial Operations Analyst

Deal is capitalized via existing revolver and expected to be EPS‑accretive in year one.

CSW used borrowings under its $700 million revolving credit facility to fund the deals and expects first‑full‑year EPS accretion. Historical cumulative acquisition spend of $1.7 billion since October 2015 frames this as part of an ongoing M&A program rather than a transformational pivot.

Key near‑term financial dependencies include actual synergy capture, integration costs, and the company’s leverage profile after drawing the revolver. Watch quarterly results for reported synergy realization, any incremental interest expense, and the impact on adjusted EBITDA and EPS over the next four fiscal quarters.

Investment Highlights

• Capital investment of over $26.5 million within Specialized Reliability Solutions segment for acquisitions of Hydrotex Holdings, Inc., which further diversifies our end markets for specialty oils and lubricants, and ProAction Fluids, which delivers new products for Horizontal Directional Drilling to our portfolio
• Valuation of combined acquisitions represents approximately 5.0x trailing twelve-months’ adjusted EBITDA, adjusted for identified synergies expected to be achieved within the first 12 months post-close
• Expected to be accretive to earnings per share in the first full year of ownership
• $1.7B of cumulative acquisition capital investment by CSW Industrials since going public in October 2015
  
  

DALLAS, Nov. 21, 2025 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (NYSE: CSW) today announced the strategic deployment of over $26.5 million in completing the separate acquisitions of Hydrotex Holdings, Inc. (“Hydrotex”) and ProAction Fluids. These acquisitions are evidence of the Company’s continued commitment to add innovative product offerings and further diversify the end market uses within the Specialized Reliability Solutions segment. CSW funded the transactions with borrowings under its existing $700 million revolving credit facility.

Joseph B. Armes, Chairman, President, and Chief Executive Officer of CSW Industrials, said, “These acquisitions are consistent with our record of enhancing long-term shareholder value and adding new products to our portfolio, while allowing us to enter new end markets with products growing faster than the overall end markets served. The additions of Hydrotex and ProAction Fluids further solidifies our leadership position in niche specialty lubricants and fluids.”

Mark Bass, Vice President of CSW Industrials and General Manager, Specialized Reliability Solutions, commented, “We are excited to invest in expanding the breadth and depth of our products within Specialized Reliability Solutions. Adding Hydrotex and ProAction Fluids to our portfolio allows us to offer industry leading technology to address infrastructure horizontal directional drilling and specialty lubricants to diversify our end markets served. I could not be more thrilled to work with both teams to increase the distribution and improve the customer experience for these products.”

The acquisition of Hydrotex Holdings, Inc. brings a family of high-performance lubricants supplying products to multiple industries, including the industrial, manufacturing, agriculture, food processing, transportation, fleets, power generation, and utilities end markets, allowing additional end market diversification to our product portfolio. Hydrotex’s high-performance lubricants are designed to enhance operational efficiency, reduce equipment wear, and extend service life, enabling safer, more efficient operations.

The acquisition of ProAction Fluids adds complementary products to sell alongside current product offerings. This specialty product acquisition delivers a superior mud management solution, focusing on infrastructure build-out, to horizontal directional drilling end users compared to traditional methods.

Safe Harbor Statement
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, effective tax rate, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations, and financial performance and condition.

The forward-looking statements included in this press release are based on our current expectations, projections, estimates, and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the risk factors described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.

All forward-looking statements included in this press release are based on information currently available to us, and we assume no obligation to update any forward-looking statement except as may be required by law.

About CSW Industrials
CSW Industrials is a diversified industrial growth company with industry-leading operations in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions. CSW provides niche, value-added products with two essential commonalities: performance and reliability. The primary end markets we serve with our well-known brands include: HVAC/R, plumbing, electrical, general industrial, architecturally-specified building products, energy, mining, and rail transportation. For more information, please visit. 

Investor Relations

Alexa Huerta
Vice President, Investor Relations, & Treasurer
214-489-7113
alexa.huerta@cswindustrials.com

FAQ

How much did CSW (NYSE: CSW) spend on the Hydrotex and ProAction Fluid acquisitions?

CSW deployed over $26.5 million to acquire Hydrotex and ProAction Fluids.

What valuation multiple did CSW pay for the combined Hydrotex and ProAction deals?

The combined acquisitions were valued at approximately 5.0x trailing twelve‑months adjusted EBITDA.

Will the Hydrotex and ProAction acquisitions be accretive to CSW's (CSW) earnings?

Management expects the acquisitions to be accretive to EPS in the first full year of ownership.

How did CSW fund the Hydrotex and ProAction acquisitions announced November 21, 2025?

CSW funded the transactions with borrowings under its existing $700 million revolving credit facility.

What operational timeline did CSW give for realizing synergies from the acquisitions?

CSW expects identified synergies to be achieved within 12 months post‑close.

How do Hydrotex and ProAction change CSW's end‑market exposure?

Hydrotex adds specialty lubricants across industrial and utility end markets while ProAction adds HDD mud management for infrastructure drilling.