GRC - Gorman-Rupp acquires pumps manufacturer for $445M that is to push earnings growth double digit

Gorman-Rupp Company (NYSE:GRC) stated Wednesday that the company has agreed to acquire manufacturer of pumps and meters, Fill-Rate, a division of the Tuthill Corp., for $525M gross. The announcement arrives together with GRC's first quarter earnings results where revenue topped estimates by $4.27M. The acquisition's net transaction value is ~$445M, when adjusted for ~$80M in expected tax benefits. Gorman-Rupp expects to settle the transaction cost with its cash on-hand and new debt. With facilities in Fort Wayne, Indiana and Lenexa, Kansas, the Fill-Rite and Sotera brands are known for providing rugged, liquid transfer pumps and digital meters among other products in pump markets. For 12-month ended Mar. 31, 2022, Fill-Rite generated revenue of ~$140M and adjusted EBITDA of ~$34.5M, representing an adjusted EBITDA margin of 25%, report. Synergies: Gorman-Rupp said the transaction is expected to be accretive to its organic growth, gross margins and EBITDA margins, and is expected to be cash EPS accretive with double digit percentage accretion anticipated

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Gorman-Rupp acquires pumps manufacturer for $445M that is to push earnings growth double digit