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 positive displacement pump manufacturer, Seepex GmbH (Seepex). The all-cash transaction, valued at €431.5 million, is expected to close during Q3 upon obtaining required regulatory approvals.
“We are excited to welcome the Seepex team to the Ingersoll Rand family. With this transaction, we continue to accelerate our growth plan and deliver on our commitment to advance our digital capabilities, aftermarket growth, and complementary technology and innovation efforts,” remarked Vicente Reynal, chief executive officer of Ingersoll Rand. “Seepex has an exceptional historic organic growth profile with a high single digit revenue CAGR since 2017 with double digit growth expected in 2021, supported by a solid installed base of over 210,000 pumps and recurring aftermarket business that is already above 40% of its total annual revenue. We have identified meaningful complementary synergy opportunities and we expect to reduce the post-synergy Adjusted EBITDA purchase price multiple to low double digits by year three of ownership. Overall, we are very excited about the shareholder value this acquisition is expected to generate.”
Seepex is a world-leading manufacturer of progressive cavity pumps, a segment of positive displacement pumps that primarily serves water, wastewater, food and beverage, and chemical end markets. Based in Bottrop, Germany with facilities in North America and Asia Pacific, Seepex has approximately 800 employees and annual revenue of approximately €160 million. Upon transaction close, the Seepex business will join the Ingersoll Rand Precision and Science Technologies (PST) segment.
“Adding progressive cavity pumps to our portfolio has been a strategic priority, and Seepex sets us up for future growth as well as complements our existing PST brands,” said Nick Kendall-Jones, vice president and general manager of the Precision and Science Technologies segment. “The proven capability and expertise of the Seepex team is second to none with their intellectual property outpacing key competitors in terms of new patents and product development, and the robust Industrial Internet of Things (IIOT) platform they have built around the pump in which they have invested approximately €10 million. This digital capability and associated aftermarket efforts are focus areas we plan to scale across the whole PST segment of Ingersoll Rand. We are honored to bring these two teams together and I look forward to working with the Seepex team.”
Ulli Seeberger, chairman and owner of Seepex, commented, “Ingersoll Rand emerged as the buyer of choice given the cultural fit, vision for the business and their approach. We have had a family-owned business of more than 45 years and it was imperative to find a buyer who had a purpose and values like ours with a steadfast commitment to customer satisfaction. I’m confident our team will feel at home with Ingersoll Rand.” As part of the transaction, Mr. Seeberger will retire as chairman of Seepex. Ingersoll Rand looks forward to working together with and continuing to support the impressive growth strategy that has been implemented by the existing Seepex management team.
Delphi Advisors GmbH is serving as financial advisor to Ingersoll Rand and Simpson Thacher & Bartlett LLP and Gleiss Lutz are serving as legal counsel. Lincoln International AG is serving as financial advisor to Seepex and Skadden, Arps, Meagher & Flom LLP is serving as legal counsel.
About Ingersoll Rand Inc.
Ingersoll Rand Inc. (NYSE:IR), driven by an entrepreneurial spirit and ownership mindset, is dedicated to helping make life better for our employees, customers and communities. Customers lean on us for our technology-driven excellence in mission-critical flow creation and industrial solutions across 40+ respected brands where our products and services excel in the most complex and harsh conditions. Our employees develop customers for life through their daily commitment to expertise, productivity and efficiency. For more information, visit www.IRCO.com.
This news release contains “forward-looking statements” as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including but not limited to, statements that relate to our intent to acquire Seepex, the expected benefits of the proposed transaction, the timing of the transaction and the outcome of anticipated revenue and synergy opportunities. These forward-looking statements are based on Ingersoll Rand’s current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from these current expectations. Such risks and uncertainties, include, but are not limited to: our ability to timely obtain, if ever, necessary regulatory approvals of the proposed transaction; adverse effects on the market price of our common stock and on our operating results because of our inability to timely complete, if ever, the proposed transaction; our ability to fully realize the expected benefits of the proposed transaction; negative effects of announcement or consummation of the proposed transaction on the market price of the company’s common stock; significant transaction costs and/or unknown liabilities; general economic and business conditions that may impact the companies in connection with the proposed transaction; unanticipated expenses such as litigation or legal settlement expenses; changes in capital market conditions; the impact of the proposed transaction on the company’s employees, customers and suppliers; and the ability of the companies to successfully integrate operations after the transaction. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Additional factors that could cause Ingersoll Rand’s results to differ materially from those described in the forward-looking statements can be found under the section entitled “Risk Factors” in its most recent annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in its periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. The foregoing list of important factors is not exclusive.
Any forward-looking statements speak only as of the date of this release. Ingersoll Rand undertakes no obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
On June 22, 2021, Ingersoll Rand made available an investor presentation titled “Acquisition of Seepex GmbH” through the Investor Relations section of its website (investors.irco.com). This presentation provides information for investors and other stakeholders regarding the proposed acquisition of Seepex.