IDEX to Acquire Banjo Corporation
IDEX Corporation announced it has entered into a definitive agreement to acquire Banjo Corporation, a leader in special purpose, severe duty pumps, valves, fittings and systems which serve both OEM and after-market applications in agricultural and industrial liquid handling.
Based in Crawfordsville, Indiana, Banjo has revenues of approximately $44 million.
Commenting on the agreement, IDEX Chairman and Chief Executive Officer Larry Kingsley said, "Banjo is a terrific addition to our company and an excellent fit within our highly engineered, applied solutions business profile. Banjo's track record for innovation and growth in attractive niche segments, such as chemical, alternative fuels and other emerging agricultural and industrial applications, provides for continued organic growth opportunities.
"Upon completion," Kingsley continued, "we anticipate that Banjo, along with our previously-announced acquisitions of EPI and JUN-AIR, should produce annualized net sales of approximately $100 million with operating margins in a range of 23 to 25 percent. We expect these acquisitions to be accretive to net earnings in the first year."
Mike Bowman, President of Banjo Corporation, said, "We are excited about our decision to join IDEX. We have similar philosophies in business and marketing strategies, which will enable Banjo to expand its markets and product lines domestically and around the world."
Subject to regulatory approval, the Banjo transaction is expected to close in early October. The cash purchase price of approximately $183 million will be funded by the company's current cash balance and $600 million Credit Facility.
Source: IDEX Corporation