WHITE PLAINS, N.Y.--(BUSINESS WIRE)--
Strategic Acquisition Will Expand ITT’s Portfolio of Highly Engineered Industrial Pump Technologies
ITT Inc. (ITT) announced today that it has signed an agreement to acquire Rheinhütte Pumpen Group, a market-leading designer and manufacturer of centrifugal and axial flow pumps, from Aliaxis Group S.A.
The acquisition aligns with ITT’s focused growth initiatives in target markets and will enhance the Industrial Process (IP) segment’s strategy with a complementary portfolio of centrifugal pump technologies suited to corrosive, abrasive and high-temperature industrial process environments. The acquisition will bolster IP’s presence in Europe with an expanded product range as well as enhanced pump engineering, manufacturing, testing and channel to market capabilities.
Rheinhütte has a 160-year heritage and is regarded as a leading provider of highly engineered pumps suited for the handling of aggressive media. Rheinhütte solutions serve specialty applications for the chemical, mining, renewable energy and refinery processes and include solutions for sulfuric acid, molten sulfur, fertilizer and chlorine-alkali electrolysis production among others.
“The proposed agreement will bring together two companies with long legacies of application expertise across a range of harsh conditions in the industrial process space,” said ITT CEO and President Luca Savi. “We look forward to leveraging Rheinhütte’s deep engineering capabilities to deliver better solutions for our customers and unlock additional growth in key global markets.”
“This agreement reflects our commitment to delivering a comprehensive value proposition to our customers,” said ITT IP President David Malinas. “The addition of the Rheinhütte Pumpen brand to our current portfolio will broaden our worldwide pump presence. We are excited to join these two teams, leveraging their shared skills and commitment to delivering excellent products for our customers and partners.”
Rheinhütte, which is headquartered in Wiesbaden, Germany, anticipates full-year 2018 revenues of approximately $66 million. Rheinhütte has approximately 430 employees and operates in three main manufacturing locations.
The proposed transaction is expected to be accretive to ITT earnings in the first full year after closing. The cash consideration of approximately $91.5 million will be funded from the company’s cash and revolving credit facility and the final purchase price is subject to customary net working capital adjustments. The proposed transaction is expected to close in the second quarter of 2019 and is subject to customary closing conditions, including appropriate regulatory approvals.
ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the energy, transportation and industrial markets. Building on its heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin our modern way of life. ITT is headquartered in White Plains, N.Y., with employees in more than 35 countries and sales in approximately 125 countries. The company generated 2018 revenues of $2.7 billion. For more information, visit www.itt.com.
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