Global pumps and compressors manufacturer Ingersoll Rand announced Jan. 3 it has completed its acquisition of SPX Flow’s Air Treatment business in an all-cash transaction for approximately $525 million.
“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,” Ingersoll Rand chairman and CEO Vicente Reynal said. “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.”
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SPX Flow’s Air Treatment business — which has manufacturing capabilities in the U.S., Germany and South Korea — has joined the Ingersoll Rand Industrial Technologies and Servcies (IT&S) segment, according to a news release. Ingersoll Rand expects the acquisition to quickly yield adjusted EBITDA margins accretive to the IT&S segment and anticipates meaningful synergy improvements by year three to drive adjusted EBITDA margins to greater than 30%, the release said.
The acquisition of SPX Flow’s Air Treatment business follows Ingersoll Rand’s failed attempt to buy all of SPX Flow Inc. Ingersoll Rand made two offers — the first in May 2021 for $81.50 per share and a follow-up in July 2021 for $85 per share — to acquire all of SPX, both of which were rejected.