Posted June 21, 2021

Ingersoll Rand to buy German pump manufacturer

Ingersoll Rand Inc. has entered into an agreement to acquire positive displacement pump manufacturer, Seepex GmbH.

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,” said 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 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.