Ingersoll Rand Acquires ILC Dover for $2.325 Billion

By Bobby Samwell • Monday, March 25 10:20 • Permanent Link

Ingersoll Rand Inc. has announced its agreement to acquire ILC Dover ("ILC") from New Mountain Capital, LLC for an upfront cash purchase price of about $2.325 billion. The deal includes an earnout tied to the achievement of select operating efficiency metrics in 2024. ILC, a world-leader in innovative solutions for biopharmaceutical, pharmaceutical, and medical device markets, has a 75-year heritage of innovation and serves its global customer base across 11 engineering and production facilities located in North America, Europe, and Asia, with more than 2,000 team members.

The acquisition will expand Ingersoll Rand's addressable market by over $10 billion, to a total of approximately $65 billion, in highly fragmented market segments with significant and sustainable growth tailwinds. It will also increase access for existing Ingersoll Rand life science solutions through established direct channels and strong customer connectivity in biopharma, pharma, cell and gene therapy, and related life science end markets.

ILC's revenue has grown at a mid-teens compound annual growth rate (CAGR) organically over the last three years and is expected to reach almost $400 million in revenue in 2024, with mid-30s adjusted EBITDA margins. Ingersoll Rand expects to achieve a return on invested capital (ROIC) in the high single digits by year three of its ownership through the deployment of Ingersoll Rand execution excellence (IRX) and organic growth enablers like demand generation excellence (DGX).

The acquisition is subject to customary regulatory approvals and is expected to close in the second quarter of 2024.

In connection with this acquisition, Ingersoll Rand will establish a life sciences platform within its Precision and Science Technologies (P&ST) segment, consisting of ILC plus Ingersoll Rand’s life science-focused brands. Corey Walker, ILC President and CEO, will lead the life sciences platform and join the Ingersoll Rand leadership team, reporting to Vicente Reynal, Chairman and Chief Executive Officer. This platform will have approximately $700 million in revenue and will enable Ingersoll Rand to further focus its growth and investment in life sciences, a key strategic area for the company.

If you want to know more, read the company's complete 8-K report here.

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