Ingersoll Rand to acquire Tuthill Pump Group
Ingersoll Rand has entered into an agreement to acquire the assets of Tuthill Corporation’s Pump Group in an all-cash transaction valued at $84.6 million.
The transaction is expected to close in the fourth quarter. Upon closing, the employees and brands of the Pump Group will join the Ingersoll Rand Precision and Science Technologies (PST) segment.
“This is the second business we have purchased from Tuthill Corporation and I’m excited to welcome another Tuthill team to the Ingersoll Rand family,” said Vicente Reynal, president and chief executive officer of Ingersoll Rand. “With an IRX-driven playbook in place, I’m confident the integration of the Pump Group will be as seamless and successful as the prior transaction, and will help extend our portfolio of mission critical, high margin pumping solutions within PST. This transaction aligns with our M&A focused capital allocation strategy, meets our strategic and financial criteria, and we expect it to deliver meaningful shareholder value through synergy realization, including a mid-single digit Adjusted EBITDA purchase multiple by year three of ownership.”
Tuthill’s Pump Group provides gear and rotary piston pump solutions for sustainable, high growth end markets, including life science, food and beverage, medical and water and wastewater treatment. It has two manufacturing locations in Alsip, Illinois and Ilkeston, United Kingdom, approximately 100 employees and annual sales of more than $25 million. Tuthill’s Pump Group is highly complementary to existing PST brands including MP, Oberdorfer and ARO, increases PST’s market presence, and provides access to new end markets, customers and applications.
“Tuthill’s Pump Group has been a part of my family for 100 years – and that is not a valid reason to deny the good people in this business the chance to team up with a powerhouse like Ingersoll Rand,” said James G. Tuthill, chairman of Tuthill Corporation. “The combination of this time-tested business with Ingersoll Rand’s industrial might is exciting indeed. With new wind in its sails, I can’t imagine a more promising future.”
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