Atmus Filtration Technologies Inc. has announced its definitive agreement to acquire Koch Filter Corporation for $450 million in cash, subject to customary adjustments. Koch Filter, which generated $156 million in revenue in the 2025 fiscal year, is expected to bolster Atmus’ industrial air filtration platform and provide access to an established customer base in various growing end-markets.
The acquisition is expected to be accretive to Atmus’ adjusted EPS and adjusted EBITDA margin in 2026 and achieve a high-single-digit return on invested capital (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. When adjusted for the present value of expected tax benefits, the net transaction value is approximately $395 million, a 10.9x multiple after adjusting for tax benefits and cost synergies.
Koch Filter, established in 1966 and headquartered in Louisville, Kentucky, offers a comprehensive portfolio of air filtration solutions, including HVAC, HEPA, carbon, and specialty filtration systems. The company's products are engineered to enhance indoor air quality and optimize system performance.
Atmus plans to fund the transaction through a combination of cash on hand and borrowings under its credit facility, potentially including an upsize of that credit facility. The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions.
Advisors for the transaction include Benesch as the legal advisor, Jefferies LLC as the financial advisor to Atmus, and Lincoln International LLC as the financial advisor to Air Distribution Technologies and Truelink Capital.
For Atmus Filtration Technologies Inc., the acquisition of Koch Filter will mark a significant expansion into the industrial air filtration market, particularly in the industrial and commercial HVAC, data center, and power generation end-markets. With this strategic move, Atmus aims to leverage Koch Filter’s established customer relationships, extensive industry experience, and leading portfolio of consumable mission-critical products to unlock new growth opportunities.
As Atmus embarks on this acquisition, the company seeks to capitalize on the expertise and product offerings of Koch Filter, which align with Atmus’ commitment to creating a better future by protecting what is important.
This acquisition news reflects Atmus' strategic growth plans and its commitment to enhancing its presence and offerings in the filtration and media solutions industry. The market has reacted to these announcements by moving the company's shares 2.4% to a price of $47.82. For the full picture, make sure to review Atmus Filtration Technologies's 8-K report.
