DAVIDSON, NC — Ingersoll Rand Inc., a global provider of mission-critical flow creation and industrial solutions, has entered into an agreement to acquire positive displacement pump manufacturer, Seepex GmbH. The all-cash transaction, valued at €431.5 million ($514 million USD), 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.