Ingersoll Rand completes $300m acquisition of Howden Roots

Ingersoll Rand Inc. (NYSE: IR), a powerhouse in delivering mission-critical flow creation and industrial solutions, announced the completion of its acquisition of Howden Roots from Chart Industries, Inc. This significant deal, sealed at a cash transaction of around $300 million, sees the heritage brand of Howden Roots join Ingersoll Rand’s extensive portfolio.

Howden Roots, a frontrunner in low-pressure compression and vacuum technologies, showcases a robust product range under the distinguished Roots brand, which traces its origins back to 1854. With an impressive revenue stream of approximately $115 million, Roots stands firm on its strong aftermarket business model, backed by a well-established installed base.

This acquisition sees Ingersoll Rand taking over the reins of the Connersville manufacturing facility located in Indiana, U.S. Initially disclosed in June 2023, the transaction underscores the strength of the Roots brand in the market, a testament to its longstanding reputation and considerable revenue base. With this new partnership, Howden Roots is now a proud member of Ingersoll Rand’s Industrial Technologies and Services (IT&S) segment.

Highlighting the acquisition’s potential, Ingersoll Rand’s strategy anticipates the Adjusted EBITDA margins to surpass 30% by the third year, facilitated by the Ingersoll Rand Execution Excellence (IRX) and the impeccable synergy between the two entities.

Vicente Reynal, chairman and chief executive officer of Ingersoll Rand, articulated the company’s vision behind this strategic move, stating, “Our commitment to inorganic growth is unwavering, and this acquisition stands as a testament to that. We are elated to have the Roots team onboard. Together, we are poised to create unparalleled value and impact for our stakeholders, the planet, and our global clientele.”