DAVIDSON, N.C. - Ingersoll Rand Inc. (NYSE: NYSE:IR), a global provider of mission-critical flow creation and industrial solutions, announced the completion of acquisitions of two companies, Controlled Fluidics and Ethafilter s.r.l., aiming to enhance its market presence in life science and air treatment sectors.
Controlled Fluidics operates out of two locations in the United States and is known for its specialization in thermoplastic and high-performance plastic bonding, along with custom plastic assembly products. Its offerings are used across life sciences, medical, aerospace, and industrial applications.
This acquisition is expected to bolster Ingersoll Rand's life sciences portfolio and market share, particularly in high-growth and sustainable end markets. Controlled Fluidics will be integrated into the Precision and Science Technologies (P&ST) segment of Ingersoll Rand.
Ethafilter, an Italian-based company, focuses on manufacturing filters and filter elements for the compressed air sector. These products are compatible with all major brands within the industry. The acquisition of Ethafilter is set to expand Ingersoll Rand's product lineup and allow the company to venture into new markets, such as sterile filter technology.
Additionally, it is anticipated to drive growth through aftermarket services and offerings. Ethafilter will join Ingersoll Rand's Industrial Technologies and Services (IT&S) segment.
Vicente Reynal, chairman and chief executive officer of Ingersoll Rand, stated, "The acquisitions of Controlled Fluidics and Ethafilter are the latest examples of our continued strategy to acquire adjacent technologies that will complement our core offerings and provide opportunities for growth."
The company has expressed confidence in these strategic moves, projecting a mid-teens return on invested capital (ROIC) by the third full year following the acquisitions.
This information is based on a press release statement from Ingersoll Rand Inc.
InvestingPro Insights
In light of Ingersoll Rand Inc.'s recent strategic acquisitions, the company's financial metrics and market performance offer valuable insights. With a market capitalization of 37.34 billion USD, Ingersoll Rand trades at a high earnings multiple, with a current P/E ratio of 48.22. This is indicative of the market's optimism about the company's future profitability, despite the premium investors are paying relative to near-term earnings growth, as the P/E ratio adjusted for the last twelve months as of Q4 2023 stands at 44.01.
The company's revenue growth has been robust, with a 16.22% increase over the last twelve months as of Q4 2023. This aligns with Ingersoll Rand's strategy to expand its market share in the life science and air treatment sectors through acquisitions. With a revenue of 6876.1 million USD and a gross profit margin of 41.92% for the same period, the company's financial health appears solid. Moreover, Ingersoll Rand has demonstrated a strong return over the last year, with a one-year price total return of 58.96%, underscoring the market's positive reception to its growth initiatives.
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