Atmus Filtration Technologies Inc. has just announced its acquisition of Koch Filter Corporation for a whopping $450 million in cash. This move is expected to significantly impact Atmus' financials. In the 2025 fiscal year, Koch Filter generated $156 million in revenue. The transaction is projected to be accretive to Atmus' adjusted EPS and adjusted EBITDA margin in 2026 and is estimated to achieve a high-single-digit ROIC by 2028. The purchase price represents a 13.9x multiple based on Koch Filter's adjusted EBITDA for the 2025 fiscal year, which ended on September 30, 2025.
The net transaction value, after adjusting for the present value of expected tax benefits, is approximately $395 million, a 10.9x multiple after considering tax benefits and cost synergies. This acquisition is aimed at accelerating Atmus' growth by expanding into the industrial air filtration market, particularly in the industrial and commercial HVAC, data center, and power generation end-markets. Koch Filter's comprehensive portfolio includes a wide range of filters such as HVAC, HEPA, carbon, and specialty filtration systems, which are designed to enhance indoor air quality and optimize system performance.
The acquisition is expected to be funded through a combination of cash on hand and borrowings under Atmus’ credit facility, potentially including a credit facility upsize. The transaction is anticipated to close in the first quarter of 2026, subject to the satisfaction or waiver of customary closing conditions.
This strategic move is poised to unlock growth opportunities for Atmus by leveraging Koch Filter's established customer relationships, extensive industry experience, and leading portfolio of consumable mission-critical products. Atmus Filtration Technologies Inc. is clearly positioning itself for future success within the industrial air filtration market.
The acquisition underscores Atmus' commitment to expansion and diversification, and it will be interesting to see how this move impacts the company's performance and market position in the coming years. As a result of these announcements, the company's shares have moved 1.28% on the market, and are now trading at a price of $48.43. For more information, read the company's full 8-K submission here.
