Ingersoll Rand Acquires ILC Dover In $2.3 Billion Deal, Expanding Life Sciences Presence, Eyeing Space Market

In a move that strengthens their position in the life sciences sector and opens doors to the space industry, Ingersoll Rand (NYSE:IR) announced today the acquisition of ILC Dover from investment firm New Mountain Capital for $2.325 billion.

ILC Dover is a renowned manufacturer specializing in solutions for the biopharmaceutical, pharmaceutical, and medical device markets. They also boast a rich history as a supplier for the space industry, having built spacesuits worn by astronauts during the Apollo missions.

The acquisition is structured as an upfront cash purchase of $2.325 billion with a potential earnout based on ILC Dover exceeding specific operating efficiency targets in 2024.

"This acquisition significantly expands our presence in the high-growth life sciences market," stated Vicente Reynal, Chairman and CEO of Ingersoll Rand. ILC Dover's "impressive track record" in the field, he added, aligns perfectly with Ingersoll Rand's Precision and Science Technologies (P&ST) segment.

Financial details highlight the attractiveness of the deal for Ingersoll Rand. ILC Dover boasts healthy financials, with adjusted EBITDA margins in the mid-30s and consistent organic revenue growth in the mid-teens over the past three years. This is expected to provide an immediate boost to the P&ST segment.

Beyond life sciences, the acquisition gives Ingersoll Rand a strategic foothold in the space sector. "ILC Dover is the only company that has built a spacesuit for a lunar mission," Reynal emphasized, highlighting their deep relationship with NASA and other space agencies. He expressed confidence in the high single-digit growth projected for the space and aerospace market over the coming decade and Ingersoll Rand's potential to leverage ILC Dover's expertise to access new customers for their existing product lines.

The deal is expected to finalize in the second quarter of 2024, subject to customary regulatory approvals. This strategic move positions Ingersoll Rand for a prominent role in the life sciences market while potentially opening doors to new opportunities within the burgeoning space industry.