Ingersoll Rand Dives Deep Into Life Sciences With ~$2.3B ILC Dover Acquisition
Portfolio Pulse from Shivani Kumaresan
Ingersoll Rand Inc (NYSE:IR) is set to acquire ILC Dover from New Mountain Capital, LLC for approximately $2.3 billion, aiming to expand into the life sciences sector. The deal, expected to close in Q2 2024, includes an upfront cash purchase and an earnout based on 2024 operating efficiency. This acquisition will add over $10 billion to Ingersoll Rand's addressable market, reaching a total of about $65 billion. ILC Dover, serving the biopharmaceutical and space industries, is anticipated to generate $400 million in revenue by 2024. Ingersoll Rand had $1.6 billion in cash as of the end of 2023.
March 25, 2024 | 12:51 pm
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Ingersoll Rand's acquisition of ILC Dover for approximately $2.3 billion marks a significant expansion into the life sciences sector, expected to increase its addressable market by over $10 billion.
The acquisition of ILC Dover is a strategic move for Ingersoll Rand, aiming to significantly expand its footprint in the life sciences sector. The deal not only increases its addressable market by over $10 billion but also is immediately accretive to its growth and margin rates. Given the positive outlook on ILC Dover's revenue projections and the expansion into a new, high-growth sector, this acquisition is likely to be viewed positively by investors, potentially leading to a short-term uptick in IR's stock price.
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