Ingersoll Rand will purchase ILC from New Mountain Capital, a New York-based investment firm with around $50bn in assets under management, in exchange for an upfront payment of around $2.32bn in cash, along with milestones payments
Ingersoll Rand to acquire ILC Dover. (Credit: CHUTTERSNAP on Unsplash)
US-based flow creation and industrial solutions provider Ingersoll Rand has agreed to acquire ILC Dover, a special engineering development and manufacturing company.
Ingersoll Rand will purchase ILC from New Mountain Capital, a New York-based investment firm with around $50bn in assets under management.
Under the terms of the agreement, Ingersoll Rand will make an upfront payment of around $2.32bn in cash, along with an earnout contingent on achieving certain metrics in 2024.
Ingersoll Rand chairman and CEO Vicente Reynal said: “I am incredibly excited to partner with Corey and the outstanding team at ILC, whom we’ve admired for their innovative products and decades of experience in life sciences, to enhance our presence in key workflows and applications.
“We see many opportunities to leverage ILC’s established market positions and brands, including the ability to attach Ingersoll Rand’s existing liquid handling technologies and positive displacement pumps to ILC’s single-use solutions in key biopharma and pharma production processes.
“Through ILC, we will get access to approximately 1,000 customers in the broader life science and healthcare sectors, where we can leverage our demand generation capabilities to drive incremental growth in other Ingersoll Rand product lines like compressors.”
ILC is engaged in the design and production of advanced solutions for biopharmaceutical, pharmaceutical, and medical device markets and is a supplier for the space industry.
The company serves its global customer base across 11 engineering and production facilities located in North America, Europe, and Asia, with more than 2,000 team members.
Ingersoll Rand intends to establish a life sciences platform within its P&ST segment, which will also comprise its life science-focused brands Thomas, Welch, Zinsser Analytic, Tricontinent, Air Dimensions, and ILS.
ILC president and CEO Corey Walker said: “I am very proud of our team’s passion for innovation, commitment to world-class quality, and overall dedication to our customers during a period of rapid growth.
“I’m excited to combine the Ingersoll Rand and ILC Life Science portfolio of products that allow us to serve our customers from the discovery phase in the laboratory to the commercial production of life-saving therapies.
“ILC Dover’s direct channel access coupled with Ingersoll Rand’s proven growth and efficiency tools will allow us to accelerate our ability to serve customers across their workflows.”
ILC President and CEO Corey Walker will lead the life sciences platform and join the Ingersoll Rand leadership team, reporting to its chairman and chief executive officer Vicente Reynal.
The new life science platform will have around $700m in revenue and will enable Ingersoll Rand to further focus its growth and investment in life sciences, a key strategic area for the company.
Ingersoll Rand’s P&ST segment leader Santiago Arias Duval will continue to report to Reynal and lead a second platform within P&ST, which represents around $1bn in revenue.
Kirkland & Ellis served as legal counsel to Ingersoll Rand while Jefferies and Goldman Sachs & Co. served as financial advisors and Simpson Thacher & Bartlett as legal counsel to ILC Dover and New Mountain Capital.
New Mountain Capital managing director Andre Moura said: “Since we acquired ILC in early 2020, we have made substantial investments to support and drive growth.
“ILC significantly increased its manufacturing capabilities and cleanroom capacity while also driving meaningful operational initiatives to better serve its customers.
“We would like to thank Corey Walker and his management team for the successful partnership. Under Corey’s leadership, the business materially expanded its product set, including its portfolio of flexible, single-use solutions for sterile and aseptic manufacturing processes.
“We see a strong fit between Ingersoll Rand and ILC, and we are confident that Ingersoll Rand is the right partner for its next stage of growth.”