Ingersoll-Rand has entered an agreement to acquire Precision Flow Systems (PFS) for $US1.45 billion.
PFS is primarily engaged in providing pump and flow management systems for use in process, agriculture, water, pharmaceuticals, food, and beverage markets.
Some of its leading product brands are Haskel, Milton Roy, Williams and others. PFS generated revenues of $US400 million in 2018.
Ingersoll-Rand intends to fund the transaction value through available cash and debt. Upon completion, the company will integrate PFS assets with its industrial segment of the business which provided 22.9% of net revenues in the fourth quarter of 2018.
Notably, through the fluid management business, Ingersoll-Rand is engaged in designing and developing pumps for fluid handling purposes. Marketing of products is mainly done under the ARO brand.
Ingersoll-Rand said the PFS buyout will strengthen its existing fluid management business through technical expertise as well as the addition of nearly 1,000 employees, a strong management team and seven global manufacturing locations.
The transaction is subject to regulatory approvals but should be completed mid-2019.
Ingersoll Rand CEO, Michael W. Lamach, said PFS brings a talented, customer-focused team with expertise in sales, service, engineering and manufacturing, which is a great addition to the company and its fluid management team.
“With PFS, Ingersoll Rand will be well positioned as a leading provider of complex, mission critical pump and flow management technologies across highly diverse and attractive end markets and verticals. This proposed acquisition aligns well with our focus on consistent, top quartile performance in revenue, margins and cash flow, and is compelling both strategically and financially for our customers and our shareholders,” he said in a statement.
Accudyne Industries has operated PFS since 2012. The company's CEO, Charles Treadway, said Ingersoll Rand’s offer to acquire PFS is a strong endorsement of the value of the business.
“We are confident that PFS will continue to reach new heights as part of a leading global company and we believe this presents an exciting opportunity for our PFS employees, distributor partners, and end-customers,” Treadway said.
Prior to this buyout agreement, Ingersoll-Rand added ICS Group Holdings Limited to its portfolio in January 2018.
Since then, ICS Group has been strengthening Ingersoll-Rand's commercial Heating, Ventilation and Air Conditioning (HVAC) business. Also, Ingersoll-Rand formed a 50-50 joint venture with Mitsubishi Electric Corporation in May 2018.
Ingersoll-Rand brands include Thermo King and Trane.