(Reuters) -Industrial equipment maker IDEX (NYSE:IEX) Corp said on Tuesday it would buy filtration products maker Mott Corp for $1 billion in cash as it looks to bolster its presence in the medical technologies industry.
Founded in 1959, Mott makes machinery and devices used in industries such as pharmaceuticals, biotechnology and chemical manufacturing.
The company would join IDEX's health and science technologies segment, which makes scientific components and laboratory equipment.
Sales in the segment, which contributed about 40% of IDEX's total sales in 2023, had fallen 41% in the first quarter.
Northbrook, Illinois-based IDEX manufactures and provides industrial equipment and services for diversified markets, including the agricultural, semiconductor and food sectors.
The deal, expected to close by the end of the third quarter of 2024, would also bolster IDEX's presence across semiconductor wafer fab equipment, space and defense, and water purification industries, among others.
The transaction will be funded through a combination of cash on hand, borrowings from IDEX's current credit facility and potential debt issuance.