DAVIDSON, N.C. – Ingersoll Rand Inc. (NYSE: NYSE:IR), a global industrial company, has completed the acquisition of Friulair S.r.l., an Italian firm known for its compressed air treatment products, including dryers and chillers. The all-cash transaction was valued at approximately $146 million.
Friulair, which employs about 215 people, operates manufacturing facilities in Italy and Thailand, and brings in roughly $65 million in revenue. The acquisition is expected to enhance Ingersoll Rand's scale in the air dryer business and add new chiller and heat pump production capabilities, particularly strengthening its reach in the food and beverage and pharmaceutical industries.
Ingersoll Rand anticipates that the integration of Friulair will lead to Adjusted EBITDA margins exceeding 30% by the third year of ownership, attributing this to expected synergies and the implementation of Ingersoll Rand Execution Excellence (IRX).
Vicente Reynal, chairman and CEO of Ingersoll Rand, expressed enthusiasm about the acquisition, stating, "Acquiring Friulair will give us the opportunity to accelerate growth across food and beverage and pharmaceutical end markets, in addition to scaling our existing air treatment business."
The newly acquired company will become part of Ingersoll Rand's Industrial Technologies and Services (IT&S) segment. This move is part of Ingersoll Rand's ongoing strategy to expand its product offerings and market penetration through strategic acquisitions.
The press release also contained forward-looking statements regarding Ingersoll Rand's expectations for the performance and financial results following the acquisition. However, the company noted that these statements are subject to risks and uncertainties that could cause actual results to differ.
This news article is based on a press release statement.
InvestingPro Insights
As Ingersoll Rand Inc. (NYSE: IR) embraces the strategic acquisition of Friulair S.r.l. to enhance its product offerings and market presence, investors and stakeholders might be curious about the company's financial health and market standing. According to InvestingPro data, Ingersoll Rand boasts a market capitalization of $32.33 billion, indicating a robust position in the market. With a P/E ratio standing at 42.25 and adjusted to 39.77 for the last twelve months as of Q3 2023, the company trades at a high earnings multiple, which could suggest investor confidence in its future profitability.
The company's revenue growth is also notable, with a 16.93% increase over the last twelve months as of Q3 2023. This growth trajectory aligns with Ingersoll Rand's expansion strategy, as seen with the Friulair acquisition. Furthermore, with a Gross Profit Margin of 41.26% during the same period, the company maintains a strong ability to generate income relative to its revenue.
InvestingPro Tips reveal that net income is expected to grow this year, an encouraging sign for prospective and current investors. Additionally, the company's stock has shown a strong return over the last three months, with a 28.86% price total return, suggesting a positive market response to its operational strategies. For those considering a deeper investment analysis, InvestingPro offers additional tips, with a total of 15 InvestingPro Tips available on the platform.
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