Ingersoll Rand is to buy SPX FLOW’s air treatment business for $525M.

DAVIDSON, NC – Ingersoll Rand Inc., a global provider of mission-critical flow innovation and industrial solutions, has entered into an agreement to acquire SPX FLOW’s Air Treatment business for approximately $525 million.

The air treatment business, with revenues expected to reach $180 million by 2022, is a leading manufacturer of reliable and energy-efficient desiccant and refrigeration dryers, filtration systems and compressed air dehumidifiers. The business has production capacity with approximately 500 employees in the US, Germany and South Korea and markets through the highly recognized Hankison, Pneumatic Products, Jamaco, Deltec and Delair brands.

“We are pleased to welcome the SPX FLOW Air Medical Group to the Ingersoll Rand family,” said Ingersoll Rand Chairman and CEO Vicente Reynal. “Our customers rely on us to deliver new technologies that drive reliability, efficiency, performance and superior quality. We continue our strategy to increase the reliability of compressed air dryers and filtration equipment in compressor production and processing, and to expand our product offering across the broader compressor ecosystem. We expect Tailwind to be driven by the same sustainability trends we see.

“Not only does the acquisition increase our highly complementary product portfolio, but almost half of our revenue comes from aftermarket offerings – one of our key strategic acquisition criteria. We expect the strong strategic fit to accelerate adjusted EBITDA margins for the IT&S segment and drive significant synergies expected to deliver adjusted EBITDA margins above 30% in three years.

“I would like to thank the team for their commitment to developing a high-quality business and serving clients,” said SPX FLOW President and CEO Mark Michaels. “Being part of Ingersoll Rand is an exciting next step for the business.”

The all-cash transaction is expected to close in the fourth quarter, subject to necessary regulatory approvals. Upon closing of the transaction, the SPX FLOW Air Treatment business will join Ingersoll Rand’s IT&S division.