Colfax Corporation announced that it has entered into a binding agreement to acquire the Roots blowers and compressors business unit, also known as Industrial Air & Gas Technologies, from GE Oil & Gas for a cash consideration of $185 million.
Roots is a leading supplier of blower and compressor technologies which service a broad range of end markets, including water treatment, chemical production, and power generation. This acquisition will build on Howden’s global strength in compressors and blowers and will add important application expertise and product solutions to the portfolio. In 2014, Roots had approximate revenues of $155 million and EBITDA of $22 million.
In making the announcement, Steve Simms, President and Chief Executive Officer of Colfax, stated, “I am delighted to welcome the Roots team to Colfax. We are excited by the opportunities created by combining the Roots capabilities and application expertise with Howden’s global footprint and continuous improvement culture. Like Howden, the Roots business has spent more than 150 years developing market leading products and solutions, and we look forward to continuing to innovate and grow.”
Mr. Simms continued, “Strengthening our businesses through bolt-on acquisitions is a core part of our strategy, and we continue to see a robust pipeline of opportunities.”
“This transition marks another important step in the 165 year history of the Roots blowers and compressor heritage,” said Tom Schwab, General Manager of GE’s IAGT business. “Moving forward with Howden will position us for even greater success as we continue to invest in products and technology and better serve our customers globally.”
Closing of the acquisition is expected early in the third quarter following the fulfillment of certain conditions.
Citi served as the exclusive financial advisor to Colfax, and Baker Botts L.L.P. served as legal advisor.