Truck refrigeration system provider Ingersoll-Rand plc (IR) is falling slightly premarket after the company announced that it is planning to buy Precision Flow Systems for $1.45 billion from funds advised by Carlyle Group and BC Parnters Advisors.
Precision Flow is a leading provider of fluid management systems, operating in the water, agriculture, food and beverage, pharmaceuticals and process industries. The deal is expected to close in mid-2019.
Precision Flow will be folded into Swords, Ireland-based Ingersoll-Rand's Fluid Management business, which designs, manufactures, and markets pumps for specialized fluid handling applications.
"The proposed acquisition of PFS will accelerate the strategic growth of our highly profitable Fluid Management business in our Industrial segment, while significantly diversifying and enhancing our product portfolio," said Michael W. Lamach, chairman and chief executive officer of Ingersoll-Rand. "PFS brings a talented, customer-focused team with expertise in sales, service, engineering and manufacturing, which is a great addition to the company and our Fluid Management team."
The bid has support from Precision owner Accudyne Industries.
"We are proud of the growth and development of PFS under our ownership," said Charles Treadway, chief executive officer of Accudyne Industries, which has operated PFS since 2012. "Ingersoll-Rand's offer to acquire PFS is a strong endorsement of the value of this business. We are confident that PFS will continue to reach new heights as part of a leading global company and we believe this presents an exciting opportunity for our PFS employees, distributor partners, and end-customers."
Ingersoll_rand shares rose 0.6% to close at $102.51 in Monday's trading.