Ingersoll Rand To Buy SPX FLOW's Air Treatment Business In $525 Mln Cash Deal

(RTTNews) - Ingersoll Rand Inc. (IR), a provider of mission-critical flow creation and industrial solutions, Thursday said it has entered into an agreement to acquire SPX FLOW's Air Treatment business for around $525 million.

The all-cash transaction is expected to close in the fourth quarter upon obtaining required regulatory approvals. Upon the deal closure, the SPX FLOW Air Treatment business will join Ingersoll Rand's IT&S segment.

The Air Treatment business, with nearly 500 employees, is a 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, and its expected revenue for 2022 is around $180 million.

Vicente Reynal, chairman and chief executive officer of Ingersoll Rand, said, "Not only does the acquisition add a highly complementary product portfolio, nearly half of its revenue is from recurring aftermarket offerings - one of our critical strategic acquisition criteria. We expect the strong strategic fit to quickly yield adjusted EBITDA margins accretive to the IT&S segment and drive significant synergies that are expected to result in adjusted EBITDA margins greater than 30 percent by year three."