The Riverside Company Signs Definitive Agreement to Sell Its PFB Insulation Products Business to Carlisle Companies

The Riverside Company (Riverside), a global investment firm focused on the smaller end of the middle market, together with its portfolio company PFB Corporation (PFB), is pleased to announce the firm has signed a definitive agreement to sell PFB’s Plasti-Fab and Insulspan business units to Carlisle Companies Incorporated (NYSE: CSL). The sale price for the business is approximately USD $260 million, and the transaction is expected to close in Q4 2024.

Headquartered in Calgary, Alberta, PFB is a leading vertically integrated provider of Expanded Polystyrene (EPS)-based insulation products throughout North America. PFB’s Plasti-Fab division operates eight manufacturing facilities in Canada and three locations in the Midwestern U.S. and provides a full suite of EPS building materials and insulation products, including roofing and wall panels, insulated concrete forms and geofoam blocks for infrastructure applications. The Insulspan business unit designs and manufactures Structural Insulated Panels (SIPs) that lower construction costs and improve energy efficiency for residential and commercial buildings. The company sells its products into the reseller, distributor, contractor, builder and infrastructure channels. Following the sale, PFB will retain and continue to operate its PFB Custom Homes Group subsidiary.

Since taking PFB private in December 2021, Riverside worked closely with the PFB leadership team to expand distribution and invest in automation and increased manufacturing capacity. With these initiatives, PFB’s earnings more than doubled during Riverside’s investment period, and the enterprise value of the business tripled.

Robert Graham, PFB CEO, said, “We greatly appreciate Riverside’s support and partnership as we’ve executed our strategic growth plan over the past three years. We’re also incredibly proud of the hard work and commitment to excellence demonstrated by the entire PFB team in reaching this milestone. Our insulation products business fits very well strategically with Carlisle, and we are thrilled to join the Carlisle Companies to contribute to their continued growth.”

Sean Ozbolt, Riverside Managing Partner, added, “It has been extremely rewarding to partner with Rob and the PFB team. On behalf of our investors, we’re grateful for the vision and strong execution by PFB’s leadership.” PFB was the first Riverside company to partner with Ownership Works, a non-profit organization committed to facilitating broad-based employee ownership across private equity portfolio companies.

Houlihan Lokey acted as financial advisor to PFB and Paul Hastings and Blakes acted as legal counsel in connection with the transaction.