Ingersoll Rand acquires SPX FLOW’s air treatment business for $525m
Ingersoll Rand, an American air and gas compressor manufacturer, has acquired SPX FLOW’s air treatment business for approximately $525 million, in a move to increase its product offering in the broader compressor ecosystem.
With the acquisition, Ingersoll Rand anticipates adding compressed air dryers, filters, and other consumables to its key compressor product offering. The deal was announced in October 2022.
The air treatment business with expected revenue of around $180 million in 2022, manufactures desiccant and refrigerated dryers, filtration systems, and purifiers for dehydration in compressed air.
Vicente Reynal — Ingersoll Rand chairman and CEO said: “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.
“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.”
SPX FLOW closes the sale of its air treatment business to Ingersoll Rand. Photo courtesy of SPX FLOW .
The air treatment business operates its manufacturing facilities in the US, South Korea, and Germany as well as employs approximately 500 people.
The business has become part of the Ingersoll Rand Industrial Technologies and Services (IT&S) segment.
The brands of the air treatment business include Hankison, Jemaco, Pneumatic Products, Delair, and Deltech.
Ingersoll Rand assumes the acquisition to quickly yield adjusted EBITDA margins accretive to the IT&S segment and expects synergy improvements by year three to drive adjusted EBITDA margins to greater than 30%.