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Ingersoll (IR) on Buyout Spree, To Acquire Tuthill Pump Group

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Ingersoll Rand Inc. (IR - Free Report) announced that it agreed to purchase Tuthill Pump Group in a cash transaction worth $84.6 million. The seller in the transaction is Tuthill Corporation. Contingent upon the fulfilment of customary closing conditions, the buyout is expected to close in fourth-quarter 2021.

Shares of Ingersoll gained 3.19% at the trading close on Nov 2. The closing price was $56.23.

Tuthill Pump Group, a business division of Tuthill Corporation, specializes in manufacturing rotary piston pump and gear solutions. The products are used mainly in medical, life science, water, wastewater, food and beverage end markets. Its annual revenues are $25 million and its employee strength is 100.

Inside the Headlines

As noted, the addition of Tuthill Pump Group to Ingersoll’s portfolio will strengthen the latter’s existing pumping solution offerings, its presence in end markets and its customer base. The buyout will also boost Ingersoll’s manufacturing capabilities by adding manufacturing sites at Ilkeston, UK, and Alsip, IL. The addition of skilled employees will also be a boon for Ingersoll.

The acquired assets, upon completion, will form part of Ingersoll’s Precision and Science Technologies (“PST”) segment. Notably, the PST segment manufactures products like doing and metering pumps (for use in multiple industries), and liquid and gas pumps for use in life sciences, lab and medical markets. Key brands are Hartell, Welch, ARO, Dosatron and others. In second-quarter 2021, the segment generated revenues of $231.6 million, reflecting growth of 18.3% from the year-ago quarter. It represented 18.1% of Ingersoll’s total second-quarter revenues.

In February 2021, Ingersoll acquired Tuthill’s Vacuum and Blower Systems for $184 million. The assets were integrated with Ingersoll’s Industrial Technologies and Services segment. The segment manufactures products like couplers, air compressors, power tools, blowers and vacuum pumps.

Ingersoll’s Other Buyout Activities

Ingersoll’s capital allocation strategy gives due importance to mergers and acquisitions. In October 2021, the company acquired Deerfield Beach, FL-based Air Dimensions Inc. for $70.5 million in cash. Air Dimensions is a specialist in manufacturing vacuum diaphragm pumps. It is a strategic fit for the Precision and Science Technologies segment.

Ingersoll also acquired Seepex GmbH in September, while adding Maximus Solutions to its portfolio in August. In the first half of 2021, Ingersoll spent $215.8 million on business combinations.

Other Players in the Industry With Active Buyout Activities

Other players in the industry that are actively engaged in buyout activities are Applied Industrial Technologies, Inc. (AIT - Free Report) , IDEX Corporation (IEX - Free Report) , and Colfax Corporation .

So far in 2021, Applied Industrial acquired R.R. Floody in August and Gibson Engineering Company, Inc. in January.

IDEX acquired Abel Pumps L.P. in March, and Airtech Group as well as US Valve Corporation and other entities in June.

Colfax acquired Mathys AG Bettlach in July, MedShape in April and Trilliant Surgical in January.


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