IDEX Corporation (NYSE: IEX) has announced its acquisition of Mott Corporation and its subsidiaries for a cash consideration of $1 billion. Adjusted for the present value of expected tax benefits of approximately $100 million, the net transaction value is approximately $900 million. This represents about 19x Mott’s forecasted full year 2024 EBITDA and a mid-teens multiple based on forecasted 2025 EBITDA. The transaction is expected to be accretive to adjusted earnings per share in fiscal year 2026.
Mott is expected to generate approximately $200 million of revenue in 2024, with an EBITDA margin in the low 20s. It will join IDEX’s Health & Science Technologies segment. The transaction will be funded through a combination of cash on hand, borrowings from IDEX’s current credit facility, and potential debt issuance. It is expected to close by the end of the third quarter of 2024, subject to regulatory approvals and customary closing conditions.
The acquisition is expected to expand applied material science technologies portfolio, extend a similar value proposition into new customer relationships, enhance capabilities to address unique customer needs, bolster positioning across high-value end markets, and add to long-term growth and margin profile.
IDEX Corporation, founded in 1988, now includes more than 50 diverse businesses around the world and has approximately $3.3 billion in annual sales. The company has about 8,800 employees and manufacturing operations in more than 20 countries.
Mott, on the other hand, is a leading microfiltration business specializing in the design, customization, and manufacturing of sintered porous metal components and engineered solutions used in fluidic applications. It was founded in 1959 and is globally known for its reliability and unmatched dependability, serving the highest-cost of failure applications. Mott partners with world-class customers with demanding technical specifications to design, engineer, produce, and employ innovative products to solve their most challenging filtration and flow control problems.
The acquisition of Mott aligns with IDEX's strategy to deliver long-term, compounding value to its customers, employees, and shareholders, which includes targeted inorganic growth funded by strong cash flow generation. Following these announcements, the company's shares moved -0.4%, and are now trading at a price of $204.48. Check out the company's full 8-K submission here.
