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.
