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Ingersoll Rand (IR) Boosts Portfolio With ILC Dover Buyout
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Ingersoll Rand Inc. (IR - Free Report) recently completed the acquisition of ILC Dover for $2.325 billion in cash upfront. This deal was announced in March 2024. Concurrently, the company acquired Complete Air and Power Solutions (“CAPS”), Del PD Pumps & Gear Pvt Ltd. (Del Pumps) and Fruvac Ltd. (Fruitland Manufacturing) for a total price of around $150 million.
ILC Dover is engaged in designing and manufacturing advanced solutions for the biopharmaceutical, pharmaceutical, aerospace and medical device end markets. The company has a solid customer base of 11 engineering and production facilities based in North America, Asia and Europe.
Del Pumps, CAPS and Fruitland Manufacturing are based in India, Australia and Canada, respectively. Del Pumps produces rotary, twin and triple-gear pumps for the loading, unloading and transferring of liquids. CAPS offers compressed air and power generation services to its customers and Fruitland Manufacturing is engaged in manufacturing mobile and truck-mounted vacuum pumps, systems and peripheral parts.
Acquisition Rationale
The buyout of ILC Dover 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 complement IR’s expertise in liquid handling technologies and positive displacement pumps. This will enable Ingersoll Rand to set up a life sciences platform and will also boost the company’s market reach by more than $10 billion, to a total of roughly $65 billion. ILC Dover will be incorporated into IR’s Precision & Science Technologies segment.
On a separate note, the acquisition of Del Pumps will complement IR’s expertise in mission-critical, pumping solutions across life science, food and beverage and medical industries. The buyout will augment the precision technologies business within the company’s Precision and Science Technologies segment.
With the CAPS buyout, IR will be able to expand its product portfolio for its clients and the acquisition of Fruitland will augment the company’s capabilities in the mobile vacuum market. Ingersoll Rand will integrate both companies into its Industrial Technologies and Services segment.
Zacks Rank and Price Performance
IR currently carries a Zacks Rank #2 (Buy).
Exposure to various end markets including industrial manufacturing, mining & construction, energy, transportation, as well as chemical processing should help Ingersoll Rand offset weaknesses associated with a single market. The company continues to see higher orders across its product portfolio of industrial vacuums and blowers, which will drive the Industrial Technologies & Services segment.
In the past year, the stock gained 48.4% compared with the industry’s 27.6% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked companies from the Industrial Products sector are discussed below.
Image: Bigstock
Ingersoll Rand (IR) Boosts Portfolio With ILC Dover Buyout
Ingersoll Rand Inc. (IR - Free Report) recently completed the acquisition of ILC Dover for $2.325 billion in cash upfront. This deal was announced in March 2024. Concurrently, the company acquired Complete Air and Power Solutions (“CAPS”), Del PD Pumps & Gear Pvt Ltd. (Del Pumps) and Fruvac Ltd. (Fruitland Manufacturing) for a total price of around $150 million.
ILC Dover is engaged in designing and manufacturing advanced solutions for the biopharmaceutical, pharmaceutical, aerospace and medical device end markets. The company has a solid customer base of 11 engineering and production facilities based in North America, Asia and Europe.
Del Pumps, CAPS and Fruitland Manufacturing are based in India, Australia and Canada, respectively. Del Pumps produces rotary, twin and triple-gear pumps for the loading, unloading and transferring of liquids. CAPS offers compressed air and power generation services to its customers and Fruitland Manufacturing is engaged in manufacturing mobile and truck-mounted vacuum pumps, systems and peripheral parts.
Acquisition Rationale
The buyout of ILC Dover 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 complement IR’s expertise in liquid handling technologies and positive displacement pumps. This will enable Ingersoll Rand to set up a life sciences platform and will also boost the company’s market reach by more than $10 billion, to a total of roughly $65 billion. ILC Dover will be incorporated into IR’s Precision & Science Technologies segment.
On a separate note, the acquisition of Del Pumps will complement IR’s expertise in mission-critical, pumping solutions across life science, food and beverage and medical industries. The buyout will augment the precision technologies business within the company’s Precision and Science Technologies segment.
With the CAPS buyout, IR will be able to expand its product portfolio for its clients and the acquisition of Fruitland will augment the company’s capabilities in the mobile vacuum market. Ingersoll Rand will integrate both companies into its Industrial Technologies and Services segment.
Zacks Rank and Price Performance
IR currently carries a Zacks Rank #2 (Buy).
Exposure to various end markets including industrial manufacturing, mining & construction, energy, transportation, as well as chemical processing should help Ingersoll Rand offset weaknesses associated with a single market. The company continues to see higher orders across its product portfolio of industrial vacuums and blowers, which will drive the Industrial Technologies & Services segment.
In the past year, the stock gained 48.4% compared with the industry’s 27.6% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked companies from the Industrial Products sector are discussed below.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 8.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for AIT’s fiscal 2024 earnings has improved 2.1% in the past 60 days. The stock has risen 45.5% in the past year.
Belden Inc. (BDC - Free Report) presently carries a Zacks Rank of 2 and has a trailing four-quarter earnings surprise of 14.7%, on average.
The consensus estimate for BDC’s 2024 earnings has increased 8.3% in the past 60 days. Shares of Belden have gained 8% in the past year.
Crane Company (CR - Free Report) presently carries a Zacks Rank of 2. CR delivered a trailing four-quarter earnings surprise of 15.2%, on average.
The Zacks Consensus Estimate for CR’s 2024 earnings has increased 4% in the past 60 days. Its shares have gained 94.3% in the past year.