Ingersoll Rand Acquires Paragon Tank Truck
Expands Ingersoll Rand’s capabilities into liquid packages with market leader and strengthens blower portfolio
Increases exposure to high growth, sustainable end markets like food and beverage
Attractive low double digit Adjusted EBITDA purchase multiple which is reduced to mid-single digits by year three of ownership
DAVIDSON, N.C., February 01, 2023--(BUSINESS WIRE)--Ingersoll Rand Inc. (NYSE:IR), a global provider of mission-critical flow creation and industrial solutions, has acquired Paragon Tank Truck Equipment ("Paragon") for an all-cash purchase price of approximately $40 million.
Paragon is a leading provider of solutions used for loading and unloading dry bulk and liquid tanks on and off of trucks. Its solutions include pneumatic blowers, stationary packages and accessories for dry bulk and hydraulic packages, coolers, air compressors and accessories for the liquid segment.
"Paragon adds differentiated liquid packaging capabilities and expands our blower offerings," said Gary Gillespie, senior vice president and general manager of the ITS Americas business. "The Paragon brand is well known in the market and bringing Paragon into the Ingersoll Rand family adds another option for our customers. Paragon also brings deep end user and distributor relationships across the trucking industry, broadening our channel reach."
Paragon is headquartered in Cartersville, GA, has approximately 55 employees and annual revenue of more than $25 million. It will join the Industrial Technologies and Services (ITS) segment of Ingersoll Rand.
About Ingersoll Rand Inc.
Ingersoll Rand Inc. (NYSE:IR), driven by an entrepreneurial spirit and ownership mindset, is dedicated to helping make life better for our employees, customers and communities. Customers lean on us for our technology-driven excellence in mission-critical flow creation and industrial solutions across 40+ respected brands where our products and services excel in the most complex and harsh conditions. Our employees develop customers for life through their daily commitment to expertise, productivity and efficiency. For more information, visit www.IRCO.com.
This news release contains "forward-looking statements" as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including but not limited to, statements that relate to our intent to acquire Air Dimensions Inc., the expected benefits of the proposed transaction, the timing of the transaction and the outcome of anticipated revenue and synergy opportunities. These forward-looking statements are based on Ingersoll Rand’s current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from these current expectations. Such risks and uncertainties, include, but are not limited to: our ability to timely obtain, if ever, necessary regulatory approvals of the proposed transaction; adverse effects on the market price of our common stock and on our operating results because of our inability to timely complete, if ever, the proposed transaction; our ability to fully realize the expected benefits of the proposed transaction; negative effects of announcement or consummation of the proposed transaction on the market price of the company’s common stock; significant transaction costs and/or unknown liabilities; general economic and business conditions that may impact the companies in connection with the proposed transaction; unanticipated expenses such as litigation or legal settlement expenses; changes in capital market conditions; the impact of the proposed transaction on the company’s employees, customers and suppliers; and the ability of the companies to successfully integrate operations after the transaction. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Additional factors that could cause Ingersoll Rand’s results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" in its most recent annual report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), as such factors may be updated from time to time in its periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. The foregoing list of important factors is not exclusive.
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