·Strong strategic fit with Ingersoll Rand portfolio of mission-critical air compression technologies Extends portfolio of vacuum and blower products and services; expands channel coverage across
·Americas; and strengthens key application engineering and technical support capabilities
·Transaction expected to be accretive to Adjusted EPS and Adjusted EBITDA in first full year
DAVIDSON, N.C.--(BUSINESS WIRE)-- Ingersoll Rand Inc. (NYSE:IR), a global provider of mission-critical flow creation and industrial solutions, has entered into an agreement to acquire the assets of Tuthill Vacuum and Blower Systems. The all-cash transaction, valued at $184 million, is expected to close Q1 or earlier upon obtaining required regulatory approvals and necessary third-party consents.
“We are excited to welcome the Tuthill Vacuum and Blower Systems team to the Ingersoll Rand family. This transaction delivers on our commitment to significantly accelerate our growth plan and demonstrates our ability to seek out premium and iconic industrial brands with strong complementary technology and commercial growth opportunities,” remarked Vicente Reynal, chief executive officer of Ingersoll Rand. “Following our disciplined capital allocation strategy, we are paying a multiple largely in line with prior acquisitions and expect this transaction will provide a similar opportunity over the coming years to generate ROIC and reduce the post-acquisition multiple. Overall, we are proud of the immediate and long-term value this acquisition is expected to create for our shareholders.”
Tuthill Vacuum and Blower Systems is a leader in the design and manufacture of positive displacement blowers, mechanical vacuum pumps, vacuum boosters and engineered systems. Based in Springfield, Mo., Tuthill Vacuum and Blower Systems has approximately 160 employees and annual revenue of approximately $60 million. Upon transaction close, the employees and brands of Tuthill Vacuum and Blower Systems will join the Ingersoll Rand Industrial Technologies and Services (IT&S) segment.
“Customers in this market segment require a diverse mix of technology to address specific needs,” said Gary Gillespie, vice president and general manager of the IT&S Americas business. “The addition of the Tuthill Vacuum and Blower Systems' team, product portfolio, technology and application expertise will offer customers a broader array of compelling critical flow technologies solutions that deliver increased durability, precision and value. We are honored to bring these two teams together and focus on our purpose to have customers, partners and employees lean on us to help them make life better.”
The acquisition will further enhance Ingersoll Rand's IT&S segment, which manufactures and services a broad range of compressor, vacuum and blower solutions used in a variety of applications. Tuthill Vacuum and Blower Systems will expand Ingersoll Rand's vacuum offering and application expertise to better serve customers who require a deeper level of technical support in a wide variety of applications, including plastics, food processing, chemical and wastewater. In addition, the acquisition will expand the company's global blower channel coverage providing customers worldwide with more choices to meet their needs.
Steven Westfall, chief executive officer and president of Tuthill Corporation, commented, “Our business in Springfield is loaded with dedicated professionals who really care to make a difference. It's more than difficult to say goodbye to the Vacuum & Blower team – and I'm confident they will find a terrific new home as a part of the Ingersoll Rand team.”