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IR $46.94 - Ingersoll Rand to Acquire SPX Flow's Air Treatment Business

Highly complementary product portfolio of compressed air dryers, filters and other consumables with high attachment rate to core air compressor product offerings

Attractive growth profile and a strong recurring aftermarket revenue stream (nearly 50% of total revenue) supported by large installed base

Globally recognized brands aligned with multi-channel, multi-brand strategy

Strong strategic fit expected to quickly yield adjusted EBITDA margins accretive to the Industrial Technologies and Services (IT&S) segment; meaningful synergy improvements by year three expected to drive adjusted EBITDA margins to greater than 30%

$525 million purchase price equates to a low double digit multiple of pre-synergy, expected stand-alone 2022 adjusted EBITDA

DAVIDSON, N.C., October 06, 2022--(BUSINESS WIRE)--Ingersoll Rand Inc. (NYSE:IR), a global provider of mission-critical flow creation and industrial solutions, has entered into an agreement to acquire SPX FLOW’s Air Treatment business for approximately $525 million.

With expected revenue of approximately $180 million in 2022, the Air Treatment business is a leading manufacturer of reliable and energy efficient desiccant and refrigerated dryers, filtration systems and purifiers for dehydration in compressed air. The business has manufacturing capabilities in the U.S., Germany and South Korea with nearly 500 employees and goes to market through the highly recognized brands of Hankison®, Pneumatic Products®, Jemaco, Deltech® and Delair®.

"We are excited to welcome the SPX FLOW Air Treatment team into the Ingersoll Rand family," said Vicente Reynal, chairman and chief executive officer of Ingersoll Rand. "Our customers lean on us to deliver innovative technologies that drive reliability, efficiency, performance and excellence. Compressed air dryer and filtration equipment helps increase the production and process reliability of the compressor and continues our strategy of expanding our product offerings in the broader compressor ecosystem. The business is highly complementary and we expect it to be driven by the same sustainability trends that we see as a tailwind for our compressor business."

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https://finance.yahoo.com/news/ingersoll-rand-acquire-spx-flow-103000024.html