WASHINGTON (dpa-AFX) - IDEX Corp. (IEX), a maker of engineering tools and equipment, announced on Tuesday that it has inked a deal to acquire Mott Corp. and its subsidiaries for $1 billion in cash.
However, when adjusted for the present value of expected tax benefits of around $100 million, the net transaction value stands at around $900 million.
The transaction, expected to be closed by the end of the third-quarter, will be funded through a combination of cash on hand, borrowings from current credit facility, and potential debt issuance.
The acquisition is expected to be accretive to adjusted earnings per share of the acquirer starting from fiscal 2026.
Eric Ashleman, CEO of IDEX, said: 'Mott brings advanced technical and application expertise that will expand our capabilities in high-value end markets and open new organic growth opportunities. Our focus on driving profitable growth through the enterprise-wide application of 80/20 is expected to yield material benefits.'
For 2024, Mott, a maker of sintered porous material structures and flow control solutions, is expected to post revenue of around $200 million, with an EBITDA margin in the low 20s.
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