MINNEAPOLIS--(BUSINESS WIRE)--Donaldson Company, Inc. (NYSE: DCI), a leader in the global filtration market, has entered into a definitive agreement to acquire BOFA International LTD (BOFA). BOFA designs, develops and manufactures fume extraction systems across a wide range of industrial air filtration applications.
Headquartered in Poole, United Kingdom, BOFA was founded in 1987 and employs approximately 250 people. BOFA expects to generate sales of approximately $40 million in its current fiscal year. BOFA sells fume extraction systems to OEM customers, distributors and end users, and has recurring sales of replacement filters. Its fume extraction systems are used in laser, electronics, printing, 3D printing and dental applications.
“We are excited to leverage BOFA’s high-quality products and strong customer relationships to expand into new industrial air filtration markets and applications,” said Jeff Spethmann, senior vice president of Donaldson’s Industrial Products segment. “With Donaldson’s expertise in filtration technologies and global manufacturing and distribution footprint, we plan to further accelerate BOFA’s global growth and add additional filtration technology to BOFA’s products.”
“BOFA’s fume collection business will be an excellent complement to our global portfolio of filtration businesses,” said Tod Carpenter, chairman, president and chief executive officer. “The acquisition of BOFA aligns well with our strategy by growing our industrial air filtration business and diversifying our company through technology-led filtration solutions. I look forward to welcoming BOFA’s employees and customers to Donaldson Company, and supporting the BOFA team as they continue to grow their business.”
Donaldson has entered into a binding agreement to acquire 88 percent of BOFA for approximately £79 million. Completion of the transaction is subject to customary closing conditions. Donaldson expects to close the transaction during the first quarter of fiscal 2019. Once the transaction is complete, Donaldson will report revenue from the acquisition of BOFA within its Industrial Filtration Solutions business in the Industrial Products segment.
Statements in this release regarding future events and expectations, such as forecasts, plans, trends and projections relating to the Company’s business and financial performance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are identified by words or phrases such as “will likely result,” “are expected to,” “will continue,” “will allow,” “estimate,” “project,” “believe,” “expect,” “anticipate,” “forecast,” “plan,” and similar expressions. These forward-looking statements speak only as of the date such statements are made and are subject to risks and uncertainties that could cause the Company’s results to differ materially from these statements. These factors include, but are not limited to, world economic and industrial market conditions; the Company's ability to maintain certain competitive advantages over competitors; pricing pressures; the Company's ability to protect and enforce its intellectual property rights; the Company's dependence on global operations; customer concentration in certain cyclical industries; commodity availability and pricing; the Company’s ability to develop new information technology systems and maintain and upgrade existing systems; information security and data breaches; foreign currency fluctuations; governmental laws and regulations; changes in tax laws, regulations and results of examinations; the Company's ability to attract and retain key personnel; changes in capital and credit markets; execution of the Company's acquisition strategy; the possibility of asset impairment; execution of restructuring plans; the Company's ability to maintain an effective system of internal control over financial reporting. These and other risks and uncertainties are described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended July 31, 2017. The Company makes these statements as of the date of this disclosure and undertakes no obligation to update them unless otherwise required by law.
About Donaldson Company
Founded in 1915, Donaldson Company is a global leader in the filtration industry with sales, manufacturing and distribution locations around the world. Donaldson’s innovative technologies are designed to solve complex filtration challenges and enhance customers’ equipment performance. For more information, visit www.Donaldson.com.