Hydraulics & Pneumatics October 2022

NEWS Ingersoll Rand Inc, a global provider of mission-critical flow creation and industrial solutions, has entered into an agreement to acquire SPX Flow’s Air Treatment business for approximately US$525 million. With expected revenue of approximately $180 million in 2022, the Air Treatment business is an established manufacturer of energy efficient desiccant and refrigerated dryers, filtration systems and purifiers for dehydration in compressed air. The business has manufacturing capabilities in the US, Germany and South Korea with nearly 500 employees 6 HYDRAULICS & PNEUMATICS October 2022 www.hpmag.co.uk At the Bauma trade fair for construction and mining machinery in Munich, Germany, Hydreco Hydraulics is featuring the skills of the companies that make up the Duplomatic Group: Duplomatic MS, Continental Hydraulics, Hydreco Hydraulics and Till Hydraulik, united under the leadership of Daikin Industries since 1 July. Hydreco Hydraulics is showcasing its integrated motion control solutions, which include the new range of MS Series directional control valves, the new MHC multifunction ergonomic handle and other products, such as customised hydraulic cylinders. Also on display are the most recent developments of external gear pumps made in the new production site in Parma, Italy as well as the new series of cartridge valves. The Duplomatic Group is strengthening its presence in the German area due also to the recent acquisition of Till Hydraulik – the producer of micro-hydraulics as well as of hydraulic cylinders for mobile applications – which is celebrating its 60th anniversary this year. The Group’s commitment to this market includes the recent release of the website www.hydreco.com and the availability of technical and product documentation in German, to offer greater proximity and improved service to customers in this region. Innovative perspectives also on sustainability issues Simone Bulleri, mobile technical director of Hydreco, says: “Bauma is the reference fair for us in Europe for the construction and mining sector. In Munich we have the opportunity to present our innovations, take care of customers, meet again the operators and have a discussion on the needs of the manufacturers and on the solutions we are able to develop for them. I find particularly interesting the new technologies that are presented at the fair, the application of which embraces the entire value chain. This is in fact the right opportunity to acquire innovative perspectives also on sustainability issues.” Bauma is also the showcase of the integration with Daikin. Katie McColl, CEO of Hydreco Hydraulics and Continental Hydraulics, comments: “Hydreco is now part of Daikin Industries. This new path is a significant step in our growth history and represents an extraordinary opportunity to integrate the strengths and skills of Duplomatic, Hydreco, Continental and Till.” Hydreco Hydraulics exhibits at Bauma Ingersoll Rand to buy SPX Flow’s Air Treatment business and goes to market through the brands Hankison, Pneumatic Products, Jemaco, Deltech and Delair. Highly complementary “We are excited to welcome the SPX Flow Air Treatment team into the Ingersoll Rand family,” comments Vicente Reynal, chairman and chief executive officer of Ingersoll Rand. “Our customers lean on us to deliver innovative technologies that drive reliability, efficiency, performance and excellence. Compressed air dryer and filtration equipment helps increase the production and process reliability of the compressor and continues our strategy of expanding our product offerings in the broader compressor ecosystem. The business is highly complementary, and we expect it to be driven by the same sustainability trends that we see as a tailwind for our compressor business.” Reynal continues: “Not only does the acquisition add a highly complementary product portfolio, nearly half of its revenue is from recurring aftermarket offerings – one of our critical strategic acquisition criteria. We expect the strong strategic fit to quickly yield adjusted EBITDA margins accretive to the IT&S segment and drive significant synergies that are expected to result in adjusted EBITDA margins greater than 30% by year three.” Exciting next step Marc Michael, president and chief executive officer of SPX Flow, says: “I’d like to thank the team for their dedication in developing a high-quality business and for their commitment to serving customers. Being a part of Ingersoll Rand is an exciting next step for the business.” The all-cash transaction is expected to close in the fourth quarter upon obtaining required regulatory approvals. Upon transaction close, the SPX Flow Air Treatment business will join Ingersoll Rand’s IT&S segment.