Ingersoll Rand to Buy Howden Roots from Chart Industries
The recent acquisition is set to enhance the company’s low-pressure compression and vacuum capabilities.
Ingersoll Rand, an international provider of flow creation and industrial solutions, has committed to an agreement to purchase Howden Roots (Roots) from Chart Industries. The all-cash transaction is valued at roughly $300 million. Roots supplies low-pressure compression and vacuum technologies and has been around since 1854. The company generates approximately $115 million in revenue.
Vicente Reynal, chairman and CEO of Ingersoll Rand, stated: “We have long admired Roots and are thrilled to add this iconic brand to our portfolio. This complementary acquisition expands our low-pressure compression and vacuum product offerings and adds centrifugal compression capabilities."
Reynal also emphasized Roots' commitment to enabling crucial applications that promote a more sustainable world, which aligns with Ingersoll Rand's pledge to "Make Life Better." He specifically highlighted Roots' unique expertise in green steel as an exciting opportunity for other sectors of their business.
"This acquisition further demonstrates our ability to execute on our robust M&A funnel, Reynal added. “We expect the strong strategic fit and the deployment of Ingersoll Rand Execution Excellence to yield Adjusted EBITDA margins greater than 30% by year three.”
Jill Evanko, CEO and President of Chart Industries, stated, "Ingersoll Rand is an excellent home for Roots." Evanko also noted Ingersoll Rand's multi-channel, multi-brand strategy ensures the continuation of the Roots brand and that their ownership model will be beneficial for the Roots employees.
The acquisition is projected to be finalized in the third quarter of 2023, pending necessary regulatory approvals. Upon closure, Roots will become part of Ingersoll Rand's Industrial Technologies and Services segment.
