On Dec. 7, Ingersoll rand Corporation (NYSE: IR) and tai ho group (Tuthill Corporation) to reach an agreement, in cash, buy vacuum and blower business, amount to 184 million dollars (1.2 billion yuan), the acquisition in obtaining relevant regulatory approval and consent from a third party, is expected in the first quarter of next year or earlier time.
“We are very pleased to have the Tuthill vacuum and Fan business team join the Ingersoll Rand family. This transaction fulfills our commitment to accelerate our growth plans and demonstrates our ability to seek premium and iconic industrial brands with strong complementary technologies and business growth opportunities.” Vicente Reynal, Ingersoll Rand chief executive, said.
“In line with our strict capital allocation strategy, we are paying a multiple that is broadly consistent with previous acquisitions and expect this transaction to provide similar opportunities in the coming years to generate a return on capital and reduce post-acquisition multiples. Overall, we are proud of the near-term and long-term value this acquisition promises to deliver to our shareholders.”
Tuthile vacuum and Fan business is a leader in the design and manufacture of positive displacement blowers, mechanical vacuum pumps, vacuum boosters and engineering systems. Tuthill’s Vacuum and blower business, based in Springfield, Mo., employs about 160 people and has annual revenue of about $60 million. Upon completion of the transaction, the employees and brand of Tuthill’s vacuum and blower business will join Ingersoll Rand’s Industrial Technology and Services (IT&S) division.
“Customers in this segment need a combination of technologies to meet specific needs,” said Gary Gillespie, vice president and general manager of IT&S americas. . “The addition of the tuthill vacuum and fan business team, product portfolio, technology and application expertise will provide customers with a broader range of key process technology solutions that improve durability, accuracy and value. We are honored to bring these two teams together and focus on making our customers, partners and employees count on us to help them make their lives better.”
The acquisition will further strengthen Ingersoll Rand’s IT&s division, which produces and serves compressors, vacuum and blower solutions for a variety of applications. The Tuthill vacuum and fan business will expand Ingersoll Land’s vacuum products and application expertise to better serve customers who need deeper technical support in a variety of applications, including plastics, food processing, chemicals and wastewater treatment. In addition, the acquisition will expand the company’s global fan channel coverage and provide global customers with more options to meet their needs.
Steven Westfall, CEO and President of Tuthill Group, commented, “Our Springfield operations are filled with dedicated professionals with unique talents. It was very difficult to say goodbye to the vacuum blower team and I am sure they will find a great new home as part of the Ingersoll Rand team.”
Post time: Dec-11-2020