Ingersoll Rand Completes Acquisition of SPX FLOW’s Air Treatment Business
DAVIDSON, N.C.--(BUSINESS WIRE)--Jan 3, 2023--
Ingersoll Rand Inc. (NYSE:IR), a global provider of mission-critical flow creation and industrial solutions, has completed the acquisition of SPX FLOW’s Air Treatment business in an all-cash transaction of approximately $525 million.
The Air Treatment business adds a highly complementary product portfolio of energy efficient compressed air dryers, filters and other consumables with a high attachment rate to Ingersoll Rand’s core compressor product offering. The business has an attractive growth profile and nearly 50% of its expected 2022 revenue of approximately $180 million is from aftermarket sales to its large installed base.
Ingersoll Rand expects the acquisition to quickly yield adjusted EBITDA margins accretive to the Industrial Technologies and Services (IT&S) segment and anticipates meaningful synergy improvements by year three to drive adjusted EBITDA margins to greater than 30%.
“We remain focused on driving inorganic growth through acquisitions that strengthen our position in core categories and broaden our exposure into high-growth, sustainable end markets,” said Vicente Reynal, chairman and chief executive officer of Ingersoll Rand. “And this acquisition demonstrates that commitment. We are excited to welcome the team to the Ingersoll Rand family and cannot wait to see how together we will make life better – for our employees, customers, planet and shareholders.”
The Air Treatment business has manufacturing capabilities in the U.S., Germany and South Korea and goes to market under the highly recognized brands of Hankison®, Pneumatic Products®, Jemaco, Deltech® and Delair®. The business has joined the Ingersoll Rand IT&S segment.
This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to Ingersoll Rand Inc.’s (the “Company” or “Ingersoll Rand”) expectations regarding the performance of its business, its financial results, its liquidity and capital resources and other non-historical statements. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “forecast,” “outlook,” “target,” “endeavor,” “seek,” “predict,” “intend,” “strategy,” “plan,” “may,” “could,” “should,” “will,” “would,” “will be,” “on track to” “will continue,” “will likely result,” or the negative thereof or variations thereon or similar terminology generally intended to identify forward-looking statements. All statements other than historical facts are forward-looking statements. These forward-looking statements are based on Ingersoll Rand’s current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from these current expectations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) the impact on the Company’s business, suppliers and customers and global economic conditions of the COVID-19 pandemic, including business disruptions caused by government restrictions; (2) unexpected costs, charges or expenses resulting from completed and proposed business combinations; (3) uncertainty of the expected financial performance of the Company; (4) failure to realize the anticipated benefits of completed and proposed business combinations; (5) the ability of the Company to implement its business strategy; (6) difficulties and delays in achieving revenue and cost synergies; (7) inability of the Company to retain and hire key personnel; (8) evolving legal, regulatory and tax regimes; (9) changes in general economic and/or industry specific conditions; (10) actions by third parties, including government agencies; (11) adverse impact on our operations and financial performance due to natural disaster, catastrophe, pandemic, geopolitical tensions or other events outside of our control; (12) the timing, manner and volume of repurchases of common stock pursuant to our share repurchase program; and (13) other risk factors detailed in Ingersoll Rand’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), as such factors may be updated from time to time in its periodic filings with the SEC, which are available on the SEC’s website at http://www.sec.gov. The foregoing list of important factors is not exclusive. Any forward-looking statements speak only as of the date of this release. Ingersoll Rand undertakes no obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
About Ingersoll Rand Inc.
Ingersoll Rand Inc. (NYSE:IR), driven by an entrepreneurial spirit and ownership mindset, is dedicated to helping make life better for our employees, customers and communities. Customers lean on us for our technology-driven excellence in mission-critical flow creation and industrial solutions across 40+ respected brands where our products and services excel in the most complex and harsh conditions. Our employees develop customers for life through their daily commitment to expertise, productivity and efficiency. For more information, visit www.IRCO.com.
View source version on businesswire.com:https://www.businesswire.com/news/home/20230103005136/en/
KEYWORD: UNITED STATES NORTH AMERICA NORTH CAROLINA
INDUSTRY KEYWORD: CONSTRUCTION & PROPERTY ENVIRONMENT MACHINERY BUILDING SYSTEMS ENGINEERING CHEMICALS/PLASTICS AEROSPACE MANUFACTURING
SOURCE: Ingersoll Rand Inc.
Copyright Business Wire 2023.
PUB: 01/03/2023 08:30 AM/DISC: 01/03/2023 08:31 AM