Ingersoll Rand ( NYSE: IR ) on Thursday said it agreed to acquire SPX Flow's air-treatment business for about $525 million in cash.
The maker of industry machinery estimated the transaction will be closed in Q4 after receiving regulatory approvals. The air-treatment business, which this year will see an estimated $180 million in revenue, will be part of Ingersoll Rand's IT&S segment.
SPX Flow's air-treatment business, whose brands include Hankison, Pneumatic Products, Jemaco, Deltech and Delair, has almost 500 employees. Its factories in the United States, Germany and South Korea make products such as dryers, filtration systems and purifiers for dehydration in compressed air.
"Not only does the acquisition add a highly complementary product portfolio, nearly half of its revenue is from recurring aftermarket offerings -- one of our critical strategic acquisition criteria," Vicente Reynal, chairman and chief executive officer of Ingersoll Rand, said in a statement.
The agreement comes more than a year after SPX Flow, which makes equipment for nutrition, health and industrial businesses, was said to reject a takeover bid from Ingersoll Rand, Reuters reported at the time.
SPX Flow last year was acquired by an affiliate of Lone Star Funds in an all-cash transaction valued at $3.8 billion.
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Ingersoll Rand to buy SPX Flow's air-treatment business for $525M cash