Ingersoll Rand Inc. (NYSE:IR), a global provider of mission-critical flow creation and industrial solutions, has completed the acquisition of Howden Roots LLC (“Roots”) from Chart Industries, Inc. (NYSE: GTLS) in an all-cash transaction of approximately $300 million.
Roots expands Ingersoll Rand’s product portfolio with new and incremental 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. As part of the transaction, Ingersoll Rand assumed ownership of the Connersville, Indiana (U.S.) manufacturing facility.
Through the strong strategic fit and the deployment of Ingersoll Rand Execution Excellence (IRX), Ingersoll Rand expects the acquisition to yield Adjusted EBITDA margins greater than 30% by year three. Roots has joined the Ingersoll Rand’s Industrial Technologies and Services (IT&S) segment.
“This acquisition demonstrates our commitment to inorganic growth through value-enhancing acquisitions,” said Vicente Reynal, chairman and chief executive officer of Ingersoll Rand. “We are excited to welcome the Roots team to the Ingersoll Rand family. Together, we will make life better – for our employees, customers, planet, and shareholders.”
