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Ingersoll Rand (IR) to Buy ILC & Boost Life Sciences Unit
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Ingersoll Rand Inc. (IR - Free Report) entered into a definitive deal to purchase ILC Dover from New Mountain Capital, LLC for $2.325 billion in cash upfront. The buyout includes an earnout related to achieving specific operating efficiency metrics this year.
ILC Dover is engaged in designing and manufacturing advanced solutions for the biopharmaceutical, pharmaceutical, aerospace and medical device end markets. The company, which employs more than 2,000 workers, has a solid customer base of 11 engineering and production facilities based in North America, Asia and Europe.
Acquisition Rationale
The latest buyout is in sync with Ingersoll Rand’s policy of acquiring businesses to strengthen its business and expand its market share. The inclusion of ILC Dover’s single-use solutions in biopharma and pharma production processes will strongly complement Ingersoll Rand’s expertise in liquid handling technologies and positive displacement pumps. This will enable Ingersoll Rand to set up a life sciences platform, which will likely generate revenues of $700 million, thus allowing it to boost its growth in the life sciences market.
ILC Dover will be incorporated into IR’s Precision & Science Technologies segment and will be led by ILC president and CEO Corey Walker. With the buyout, IR will gain access to around 1,000 customers in the broader life science and healthcare markets.
Zacks Rank, Price Performance and Estimate Revisions
Ingersoll Rand, with approximately $38.1 billion market capitalization, currently carries a Zacks Rank #2 (Buy). The company is set to gain from a healthy demand environment, solid product portfolio and innovation capabilities. Its ability to generate strong cash flows supports its capital deployment strategy.
Image Source: Zacks Investment Research
In the past three months, the company’s shares have increased 21.4% compared with the industry’s growth of 10.4%.
The Zacks Consensus Estimate for its earnings is pegged at $3.20 for 2024, suggesting an increase of 3.2% from the 60-day-ago figure.
Applied Industrial delivered a trailing four-quarter average earnings surprise of 10.4%. In the past 60 days, the Zacks Consensus Estimate for AIT’s 2024 earnings has increased 1.7%.
Parker-Hannifin delivered a trailing four-quarter average earnings surprise of 14.4%. In the past 60 days, the Zacks Consensus Estimate for PH’s 2024 earnings has increased 4.2%.
Luxfer delivered a trailing four-quarter average earnings surprise of 82.7%. In the past 60 days, the Zacks Consensus Estimate for LXFR’s 2024 earnings has increased 111.4%.
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Ingersoll Rand (IR) to Buy ILC & Boost Life Sciences Unit
Ingersoll Rand Inc. (IR - Free Report) entered into a definitive deal to purchase ILC Dover from New Mountain Capital, LLC for $2.325 billion in cash upfront. The buyout includes an earnout related to achieving specific operating efficiency metrics this year.
ILC Dover is engaged in designing and manufacturing advanced solutions for the biopharmaceutical, pharmaceutical, aerospace and medical device end markets. The company, which employs more than 2,000 workers, has a solid customer base of 11 engineering and production facilities based in North America, Asia and Europe.
Acquisition Rationale
The latest buyout is in sync with Ingersoll Rand’s policy of acquiring businesses to strengthen its business and expand its market share. The inclusion of ILC Dover’s single-use solutions in biopharma and pharma production processes will strongly complement Ingersoll Rand’s expertise in liquid handling technologies and positive displacement pumps. This will enable Ingersoll Rand to set up a life sciences platform, which will likely generate revenues of $700 million, thus allowing it to boost its growth in the life sciences market.
ILC Dover will be incorporated into IR’s Precision & Science Technologies segment and will be led by ILC president and CEO Corey Walker. With the buyout, IR will gain access to around 1,000 customers in the broader life science and healthcare markets.
Zacks Rank, Price Performance and Estimate Revisions
Ingersoll Rand, with approximately $38.1 billion market capitalization, currently carries a Zacks Rank #2 (Buy). The company is set to gain from a healthy demand environment, solid product portfolio and innovation capabilities. Its ability to generate strong cash flows supports its capital deployment strategy.
Image Source: Zacks Investment Research
In the past three months, the company’s shares have increased 21.4% compared with the industry’s growth of 10.4%.
The Zacks Consensus Estimate for its earnings is pegged at $3.20 for 2024, suggesting an increase of 3.2% from the 60-day-ago figure.
Other Stocks to Consider
We have highlighted three other top-ranked stocks from the same space, namely Applied Industrial Technologies (AIT - Free Report) , Parker-Hannifin Corporation (PH - Free Report) and Luxfer Holdings plc (LXFR - Free Report) , each currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Applied Industrial delivered a trailing four-quarter average earnings surprise of 10.4%. In the past 60 days, the Zacks Consensus Estimate for AIT’s 2024 earnings has increased 1.7%.
Parker-Hannifin delivered a trailing four-quarter average earnings surprise of 14.4%. In the past 60 days, the Zacks Consensus Estimate for PH’s 2024 earnings has increased 4.2%.
Luxfer delivered a trailing four-quarter average earnings surprise of 82.7%. In the past 60 days, the Zacks Consensus Estimate for LXFR’s 2024 earnings has increased 111.4%.