Enpro Inc. to Acquire Advanced Micro Instruments, Inc.
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Insights
The acquisition of Advanced Micro Instruments, Inc. (AMI) by Enpro Inc. for $210 million represents a strategic expansion into compositional analysis within the Test & Measurement industry. The valuation at approximately 13x normalized 2023 EBITDA suggests a premium based on AMI's specialized technology and market position. This move is indicative of Enpro's focus on enhancing its Sealing Technologies segment and tapping into the growing demand for critical environment safeguarding solutions.
The transaction is expected to be accretive to Enpro's revenue growth and profitability, which is a key consideration for investors. The accretion to adjusted diluted earnings per share should be noted as a positive signal for Enpro's financial health and future earnings potential. The integration of AMI's analyzers and sensors could optimize Enpro's product offerings, potentially leading to operational synergies and cost savings in the long run.
AMI's presence in various markets such as midstream natural gas, biogas and aerospace indicates a diversified customer base and technological applicability. The acquisition aligns with current market trends, emphasizing infrastructure integrity, process efficiency, safety enhancement and support for the clean energy transition. These trends are driven by increasing regulatory pressures and a shift towards sustainable practices.
Enpro's strategy to invest in safeguarding critical environments is well-timed, as industries are increasingly focused on maintaining operational continuity and environmental compliance. The addition of AMI's portfolio could position Enpro favorably within the market, potentially increasing its competitive edge by offering comprehensive solutions that include compositional analysis, which is essential for quality control and regulatory adherence.
The acquisition highlights the importance of environmental monitoring technologies in today's industrial landscape. AMI's analyzers and sensors play a crucial role in detecting contaminants and enabling operators to avoid flaring, thus reducing CO2 emissions. This capability is particularly relevant in the context of global efforts to combat climate change and the transition to cleaner energy sources.
Enpro's investment in AMI's technology underscores the business imperative of environmental responsibility. The ability to monitor and improve process efficiencies not only has regulatory and safety implications but also reflects a growing market demand for sustainable industrial practices. This could lead to increased demand for Enpro's expanded product suite, as companies seek to align with environmental standards and reduce their carbon footprint.
AMI to become part of Enpro’s Sealing Technologies Segment, Expanding Core Capabilities into Compositional Analysis, a Growing Area in the Test & Measurement Industry
AMI’s Innovative Analyzer and Sensor Portfolio Adds Capabilities to the Sealing Technologies Segment that Support the Safeguarding of Critical Environments
Accretive to Sealing Technologies Growth Rate, Segment Profitability and Enpro Adjusted Diluted Earnings Per Share
Based in
Upon closing, AMI will be included in the Sealing Technologies segment, adding to the segment’s portfolio of products and solutions that safeguard critical environments. The acquisition is expected to be accretive to segment revenue growth and profitability, in addition to Enpro’s adjusted diluted earnings per share.
“Acquiring AMI, an industry leader, will build on our strategy to invest in products and technologies that safeguard critical environments in key secular growth markets,” said Eric Vaillancourt, President and Chief Executive Officer. “AMI’s innovative analyzer and sensor solutions will add to our existing portfolio of critical process technologies in the Sealing Technologies segment, and this acquisition will be an important step forward in expanding our capabilities into compositional analysis. We look forward to welcoming the talented AMI team to the Enpro family of companies and capitalizing on our combined capabilities.”
“We look forward to joining the Enpro family and this is an exciting next chapter for AMI,” said Kevin Bates, President and Chief Executive Officer of AMI. “AMI fits squarely into Enpro’s portfolio of leading-edge solutions in a variety of growing end markets that have strong technological and applied engineering advantages. Enpro is the ideal partner for us to accelerate our future growth.”
The transaction is expected to close in early 2024, subject to limited closing conditions, including regulatory approvals.
About Enpro
Enpro is a leading industrial technology company focused on critical applications across many end-markets, including semiconductor, industrial process, commercial vehicle, sustainable power generation, aerospace, food and pharma, photonics and life sciences. Headquartered in
About Advanced Micro Instruments, Inc.
AMI is a majority-owned portfolio company of McNally Capital, LLC, a
Forward-Looking Statements
Statements in this press release that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They involve a number of risks and uncertainties that may cause actual events and results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to: the possibility that necessary regulatory approvals may not be obtained or that other conditions to closing may not be satisfied such that the acquisition of AMI will not close or that the closing may be delayed; the possibility of unexpected costs, liabilities or delays in connection with the transaction; risks that the acquisition of AMI disrupts current plans and operations of Enpro; the ability to recognize the anticipated benefits of the transaction; the outcome of any legal proceedings that may arise with respect to the transaction; and the occurrence of any event, change or other circumstances that could give rise to the termination of the agreement for the acquisition of AMI. Enpro’s filings with the Securities and Exchange Commission, including its most recent Form 10‑K and Form 10‑Q, describe other risks and uncertainties. Enpro does not undertake to update any forward-looking statements made in this press release to reflect any change in management’s expectations or any change in the assumptions or circumstances on which such statements are based.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231228647846/en/
Investor Contacts:
Milt Childress
Executive Vice President and
Chief Financial Officer
James Gentile
Vice President, Investor Relations
704-731-1527
investor.relations@enpro.com
Source: EnPro Industries, Inc.
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