Ingersoll Rand has acquired SPX FLOW’s Air Treatment business for approximately $525m in an all-cash transaction. The business offers energy-efficient compressed air dryers, filters, and other consumables, and is expected to generate around $180m in revenue in 2022. Ingersoll Rand anticipates the acquisition will be accretive to its Industrial Technologies and Services segment and expects to see synergy improvements within three years to drive adjusted EBITDA margins to over 30%. The Air Treatment business has manufacturing capabilities in the US, Germany, and South Korea, and goes to market under the brands Hankison, Pneumatic Products, Jemaco, Deltech, and Delair.
Ingersoll Rand (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%. This acquisition demonstrates Ingersoll Rand’s commitment to driving inorganic growth through acquisitions that strengthen its position in core categories and broaden its exposure into high-growth, sustainable end markets.
The Air Treatment business has manufacturing capabilities in the US, 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 and will work towards the common goal of making life better for employees, customers, the planet and shareholders.
Image provided by Ingersoll Rand (NYSE:IR)
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