DAVIDSON, N.C.–(BUSINESS WIRE)–Ingersoll Rand Inc. (NYSE:IR), a global provider of mission-critical flow creation and industrial solutions, has entered into a definitive agreement to acquire Howden Roots LLC from Chart Industries, Inc. (NYSE: GTLS) for an all-cash purchase price of approximately $300 million.
Roots is a leading provider of low-pressure compression and vacuum technologies. The business goes to market under the widely recognized Roots brand, which was founded in 1854. Roots has approximately $115 million in revenue and an established installed base that supports a strong aftermarket business model.
“We have long admired Roots and are thrilled to add this iconic brand to our portfolio. This complementary acquisition expands our low-pressure compression and vacuum product offerings and adds centrifugal compression capabilities,” said Vicente Reynal, chairman and chief executive officer of Ingersoll Rand. “Additionally, Roots’ focus on enabling critical applications to advance a more sustainable world aligns with Ingersoll Rand’s commitment to Make Life Better. I am especially excited about Roots’ differentiated expertise in green steel and the opportunities that creates for other parts of our business.”
Reynal continued, “This acquisition further demonstrates our ability to execute on our robust M&A funnel. We expect the strong strategic fit and the deployment of Ingersoll Rand Execution Excellence (IRX) to yield Adjusted EBITDA margins greater than 30% by year 3.”
“Ingersoll Rand is an excellent home for Roots,” stated Jill Evanko, chief executive officer and president of Chart Industries. “Ingersoll Rand’s multi-channel, multi-brand strategy ensures continuation of the Roots brand and their ownership mindset and model will benefit the Roots employees.”
This acquisition is expected to close in the third quarter 2023 upon obtaining required regulatory approvals. Upon close, Roots will join Ingersoll Rand’s IT&S segment.
Citi is serving as financial advisor and Simpson Thacher & Bartlett LLP is serving as legal counsel to Ingersoll Rand. BofA Securities is serving as financial advisor and Winston & Strawn LLP is serving as legal counsel to Chart Industries.
About Ingersoll Rand Inc.
Ingersoll Rand Inc. (NYSE:IR), driven by an entrepreneurial spirit and ownership mindset, is dedicated to helping make life better for our employees, customers and communities. Customers lean on us for our technology-driven excellence in mission-critical flow creation and industrial solutions across 40+ respected brands where our products and services excel in the most complex and harsh conditions. Our employees develop customers for life through their daily commitment to expertise, productivity and efficiency. For more information, visit www.IRCO.com.
