Atmus (NYSE: ATMU) seals $450m Koch Filter deal to expand beyond trucks and into HVAC

Atmus Filtration Technologies Inc. (NYSE: ATMU) has entered into a definitive agreement to acquire Koch Filter Corporation from Truelink Capital’s portfolio company Air Distribution Technologies Inc. in a $450 million all-cash transaction, marking a major pivot toward the fast-growing industrial air filtration sector. The deal, announced on November 24, 2025, is expected to close in the first quarter of 2026, subject to customary closing conditions. It positions Atmus to immediately broaden its footprint into high-demand verticals such as commercial and industrial HVAC, data centers, and power generation environments.

With Koch Filter generating $156 million in revenue for the fiscal year ended September 30, 2025, the acquisition is structured at a 13.9 times multiple of adjusted EBITDA. Once tax benefits are accounted for, the net transaction value stands at approximately $395 million, lowering the effective multiple to 10.9 times. Atmus expects the deal to be accretive to both adjusted earnings per share and EBITDA margin in 2026, with high-single-digit return on invested capital forecast by 2028.

The move underscores Atmus Filtration Technologies’ broader shift from vehicle-heavy filtration markets into high-consumption industrial spaces. Headquartered in Nashville, Tennessee, Atmus has historically focused on sectors like trucking, agriculture, mining, and marine equipment. The addition of Koch Filter allows the firm to create a new industrial filtration platform built on consumable, high-margin products while tapping into demand for clean air in mission-critical infrastructure.

How will the Koch Filter acquisition transform Atmus Filtration Technologies?

The acquisition is seen as a foundational move in Atmus Filtration Technologies’ long-term diversification strategy. With growing end-market pressure to deliver energy-efficient HVAC systems and ensure air purity in sensitive environments like data centers and power generation facilities, Atmus is now poised to supply a wider spectrum of filtration products beyond its legacy base of engine air and fuel filtration.

Koch Filter brings a comprehensive range of pleated filters, high-efficiency particulate air (HEPA) filters, carbon and specialty systems engineered for air quality, and contamination control. Founded in 1966 and headquartered in Louisville, Kentucky, Koch Filter is one of the few independent scaled operators in the U.S. with national manufacturing capabilities. Its footprint includes production facilities in Louisville, East Greenville in Pennsylvania, Houston in Texas, and Mira Loma in California.

Atmus Filtration Technologies Chief Executive Officer Steph Disher emphasized the alignment, stating that Koch Filter’s customer relationships and broad HVAC-centric portfolio are a natural fit with Atmus’ technical expertise and international reach. Disher said the integration would unlock new growth channels across the filtration lifecycle and strengthen the company’s position as a global filtration solutions provider.

Market analysts tracking the filtration and industrial HVAC sectors said the acquisition brings complementary synergies, especially in the consumables space where recurring revenue and aftermarket retention drive profitability. The strategic value of Koch Filter lies not only in its customer base, but also in its engineering capabilities and long-standing presence in regulated clean air applications.

Why is Truelink Capital divesting Koch Filter now?

For Truelink Capital, the transaction represents a strategic portfolio realignment. The Los Angeles-based private equity firm had acquired Air Distribution Technologies Inc. through a carve-out from Johnson Controls International plc in 2024. Koch Filter was included in that platform but is now being spun off to allow ADTi to refocus entirely on its core engineered air movement and control businesses.

Truelink Capital Co-Founder and Managing Partner Todd Golditch called the deal a milestone that reflects the firm’s value creation strategy and supports ADTi’s long-term goal of becoming a focused provider of engineered air distribution solutions. By offloading Koch Filter, Truelink enables ADTi to concentrate on its three business lines: Air Control Solutions, Air Movement Solutions, and Air Distribution Solutions.

The move also represents a clean exit with solid returns. At a headline transaction value of $450 million and a reported adjusted EBITDA multiple of 13.9 times, institutional observers note that Truelink is capitalizing on peak valuation for a scaled, specialized asset. This reinforces the firm’s reputation for executing operational upgrades and strategic exits within the industrials and business services space.

Doug Schuster, Chief Executive Officer of Air Distribution Technologies, commented that with Koch Filter transitioning to Atmus, ADTi is now fully committed to expanding its core platforms both organically and via mergers and acquisitions. The reallocation of capital from the Koch Filter sale is expected to support product innovation and capacity enhancements across ADTi’s retained units.

What does Koch Filter bring to Atmus in terms of industrial capabilities?

Koch Filter’s reputation in the commercial and specialty air filtration space is built on decades of precision manufacturing and systems engineering. Its products are used in a wide variety of mission-critical settings, including hospitals, semiconductor facilities, educational institutions, and cleanrooms. The firm’s strength lies in its depth of filter designs that improve air handling unit performance and reduce particulate and microbial loads.

The acquisition gives Atmus Filtration Technologies immediate access to a customer base that prioritizes indoor air quality, equipment longevity, and regulatory compliance. The transition also aligns with global trends pushing for decarbonized, efficient building systems and heightened attention to indoor environmental quality in the post-pandemic era.

Koch Filter Chief Executive Officer Mark Mattingly praised Truelink Capital for its recent investments in the company and said joining Atmus will enable further growth. Mattingly described the acquisition as an “exciting new chapter” that ensures employees and customers will benefit from increased resources and a larger innovation platform.

Industry sources point out that Koch Filter’s specialized engineering and strong U.S. manufacturing presence are attractive assets for a firm like Atmus, which is looking to reduce dependence on global supply chains and increase its domestic footprint. With filtration playing a growing role in sustainability-linked building certifications and infrastructure resilience, Koch Filter adds a vital lever for Atmus’ roadmap.

How is Atmus funding the Koch Filter transaction and what lies ahead?

Atmus Filtration Technologies plans to finance the acquisition using a mix of available cash and additional borrowing under its existing credit facility. The company is also considering increasing the size of that facility to accommodate this and potentially future transactions. While no equity issuance is currently planned, market analysts expect Atmus to maintain prudent leverage levels post-close.

Jefferies LLC is serving as financial advisor and Benesch as legal counsel to Atmus. Lincoln International acted as exclusive financial advisor to Truelink Capital and Air Distribution Technologies Inc., reflecting institutional confidence in both sides of the deal.

Once closed, the Koch Filter acquisition is expected to shift Atmus’ revenue mix more firmly toward industrial applications and solidify its position in high-consumption product categories. Analysts expect the integration to be a proving ground for Atmus’ ability to execute bolt-on acquisitions and to replicate its success in vehicle filtration across new verticals.

Looking ahead, investors will closely watch for early performance indicators, especially in aftermarket conversion rates and synergy realization. Atmus may also explore additional acquisitions to build on the new industrial filtration base it gains through Koch Filter.

What are the key takeaways investors and industry analysts should note from the Atmus Filtration Technologies acquisition of Koch Filter Corporation?

• Atmus Filtration Technologies is acquiring Koch Filter Corporation from Truelink Capital’s Air Distribution Technologies Inc. for 450 million dollars in cash, with closing targeted for the first quarter of 2026.
• Koch Filter generated 156 million dollars in fiscal 2025 revenue and brings a nationwide manufacturing footprint across Kentucky, Pennsylvania, Texas and California.
• The acquisition gives Atmus an immediate entry into fast‑growing HVAC, data center and power‑generation air filtration markets built around recurring consumable products.
• Atmus expects the deal to be accretive to adjusted earnings and margins in 2026 and deliver a high‑single‑digit return on invested capital by 2028.
• Truelink Capital is divesting Koch Filter as part of a strategic portfolio reshaping to refocus Air Distribution Technologies Inc. on engineered air movement and air control businesses.
• Analysts believe Koch Filter’s deep customer relationships and specialty HEPA, carbon and HVAC filtration portfolio will strengthen Atmus’ diversification beyond vehicle and equipment filtration.
• Atmus will fund the transaction through a mix of cash and additional borrowings under its credit facility, with a potential upsizing being considered.
• Industry observers expect the acquisition to accelerate Atmus’ shift toward high‑consumption aftermarket categories that offer stronger margins and more predictable revenue cycles.
• Leadership at Koch Filter and Air Distribution Technologies Inc. described the transition as aligned with long‑term strategic priorities and supportive of growth for employees and customers.