Additions of Holtec, Hanye and Hydro Prokav Advance Company’s Inorganic Growth Strategy
Demonstrates commitment to disciplined inorganic growth in adjacent products and geographies
Expands air treatment capabilities (adds $1B in addressable market) and enhances progressive cavity pump market penetration
Attractive aggregate single digit Adjusted EBITDA purchase multiple on a pre-synergy basis
DAVIDSON, N.C., August 01, 2022--(BUSINESS WIRE)--Ingersoll Rand Inc. (NYSE:IR), a global provider of mission-critical flow creation and industrial solutions, has entered into agreements to acquire Holtec Gas Systems LLC ("Holtec"), Shanghai Hanye Air Purifying Technology Co., Ltd ("Hanye"), and Hydro Prokav Pumps (India) Private Limited ("Hydro Prokav") for a combined cash purchase price of approximately $35 million.
Holtec and Hanye expand Ingersoll Rand’s air treatment capabilities and enhance the breadth of solutions provided for the larger compressor ecosystem. They will both join the Industrial Technologies and Services segment.
Based in Saint Charles, Missouri, Holtec is an internationally recognized nitrogen generator manufacturer, and the recipient of the 2022 President’s "E" Award. Holtec offers expertly designed onsite nitrogen generation systems for industrial, food & beverage and manufacturing applications and has annual revenue of approximately $10 million.
Based in Shanghai, China, Hanye is an OEM supplier of air treatment products with several unique patents in China around desiccant and refrigerated compressed air dryers and air filters. Hanye has annual revenue of approximately $4 million.
Based in Coimbatore, India, Hydro Prokav manufactures and sells progressive cavity pumps with more than 80% of its approximately $6 million in annual revenue coming from aftermarket parts. Hydro Prokav expands Ingersoll Rand’s presence in progressive cavity pumps and serves as a complementary addition to the recent Seepex acquisition to further penetrate the growing market in India and southeast Asia. Hydro Prokav will join the Precision and Science Technologies segment.
"Through the use of Ingersoll Rand Execution Excellence (IRX), we continue to execute on our robust M&A funnel. The acquisitions of Holtec, Hanye and Hydro Prokav demonstrate our commitment to finding highly adjacent bolt-ons which add products, capabilities and technologies that enhance the quality of our overall portfolio while expanding our addressable market," remarked Vicente Reynal, chairman and chief executive officer of Ingersoll Rand. "All three of these acquisitions are directly aligned with our stated M&A strategy, and we see meaningful opportunity to drive incremental synergies across our global businesses to generate shareholder value."
The acquisitions of Holtec and Hydro Prokav are expected to be completed during the third quarter of 2022. The acquisition of Hanye is expected to be completed during the fourth quarter of 2022.
About Ingersoll Rand Inc.
Ingersoll Rand Inc. (NYSE:IR), driven by an entrepreneurial spirit and ownership mindset, is dedicated to helping make life better for our employees, customers and communities. Customers lean on us for our technology-driven excellence in mission-critical flow creation and industrial solutions across 40+ respected brands where our products and services excel in the most complex and harsh conditions. Our employees develop customers for life through their daily commitment to expertise, productivity and efficiency. For more information, visit www.IRCO.com.
This news release contains "forward-looking statements" as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including but not limited to, statements that relate to our intent to acquire Air Dimensions Inc., the expected benefits of the proposed transaction, the timing of the transaction and the outcome of anticipated revenue and synergy opportunities. These forward-looking statements are based on Ingersoll Rand’s current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from these current expectations. Such risks and uncertainties, include, but are not limited to: our ability to timely obtain, if ever, necessary regulatory approvals of the proposed transaction; adverse effects on the market price of our common stock and on our operating results because of our inability to timely complete, if ever, the proposed transaction; our ability to fully realize the expected benefits of the proposed transaction; negative effects of announcement or consummation of the proposed transaction on the market price of the company’s common stock; significant transaction costs and/or unknown liabilities; general economic and business conditions that may impact the companies in connection with the proposed transaction; unanticipated expenses such as litigation or legal settlement expenses; changes in capital market conditions; the impact of the proposed transaction on the company’s employees, customers and suppliers; and the ability of the companies to successfully integrate operations after the transaction. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Additional factors that could cause Ingersoll Rand’s results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" in its most recent annual report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), as such factors may be updated from time to time in its periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. The foregoing list of important factors is not exclusive.
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