Howden to Acquire Compressor Products International

Rhea-AI Summary

Howden has entered into an agreement to acquire Compressor Products International (CPI) from EnPro Industries (NYSE: NPO) as part of its strategy to enhance its global aftermarket services in the compressor market. This acquisition, expected to finalize after regulatory approvals, will allow Howden to leverage CPI's service centers and broaden its product offerings, increasing its addressable markets by $1 billion. CPI's expertise is also set to support Howden's initiatives towards renewable energy applications, enhancing customer service and performance.

Positive

• Acquisition will increase Howden's addressable markets by $1 billion.
• CPI's expertise will enhance Howden's aftermarket service capabilities.
• The deal aligns with Howden's strategy to support renewable energy applications.

Negative

• None.

RENFREW, Scotland--(BUSINESS WIRE)-- Howden, a leading global provider of mission critical air and gas handling products, technologies and services, has entered into an agreement with EnPro Industries (NYSE: NPO) to acquire Compressor Products International (“CPI”), a leading provider of aftermarket components and services to the global reciprocating compressor market. This will be Howden’s sixth acquisition in 2021 and is expected to close following customary regulatory clearances and approvals.

Howden Group (Photo: Business Wire)

CPI, headquartered in Houston, Texas, USA, has a diverse, global blue-chip customer base with sales primarily in North America, Europe and Asia. It is a manufacturer of precision-engineered, custom aftermarket products and its broad product offering is critical to the longevity, efficiency and safety of reciprocating compressors.

The acquisition of CPI is well aligned with Howden’s strategy of expanding its global aftermarket presence in the compressor market. By leveraging CPI’s strategically located service centres, Howden will expand its aftermarket services and coverage across North America and Europe. CPI’s valves and aftermarket products are complementary and strategically important additions to Howden’s existing aftermarket compressor technology portfolio. As a result of this acquisition, Howden’s addressable markets will increase by $1 billion.

As part of Howden, CPI will be able to access growth opportunities through additional technology support from Howden and by leveraging Howden’s existing global distribution and services network in China, Asia Pacific and South Africa. With CPI’s predominantly aftermarket revenues, this acquisition will be accretive to both Howden’s aftermarket mix and overall margins.

This acquisition also reinforces Howden’s role in supporting the ongoing energy transition towards renewable sources of energy. Reciprocating compression technology is critical to the energy transition, with applications in hydrogen production and infrastructure as well biofuel production. Howden will leverage CPI’s reciprocating compressor technology to support customers through the energy transition in these critical applications.

Ross Shuster, CEO of Howden, commented: “CPI’s technology, expertise and aftermarket presence, is an excellent fit within Howden, and will allow us to best serve customers looking to improve the performance and extend the life of their vital compressor assets across a wide range of industries.

The synergies for both organisations and the positive impact for the combined customer base is significant. We look forward to welcoming the CPI team into Howden upon closing of the transaction.”

View source version on businesswire.com: https://www.businesswire.com/news/home/20211012005664/en/

Devan LaBrash / Holly Kidd

Devan.labrash@pagodapr.com / holly.kidd@pagodapr.com

+44 (0) 7741 614756 / +44 (0) 7590 405915

Source: Howden

FAQ

What is the purpose of Howden's acquisition of CPI?

The acquisition aims to enhance Howden's global aftermarket services and expand its market presence.

When is Howden's acquisition of CPI expected to close?

The acquisition is expected to close following customary regulatory clearances and approvals.

How will the acquisition of CPI impact EnPro Industries (NYSE: NPO)?

EnPro Industries will divest CPI, allowing it to focus on its core operations while Howden gains access to CPI's customer base and expertise.

What are the expected benefits for Howden from acquiring CPI?

The acquisition is expected to increase Howden's addressable markets, enhance aftermarket services, and support renewable energy initiatives.