Trane Technologies To Acquire Farrar Scientific For Total Up To $365M

Trane Technologies PLC TT has agreed to acquire Farrar Scientific for a total transaction value of up to $365 million, including a $250 million consideration upfront and a $115 million in additional payout potential.
Farrar Scientific is a provider of ultra-low temperature control for biopharmaceutical and other life science applications.
This acquisition expands Trane Technologies' capabilities in ultra-low temperature control; increases access to biopharma and other life science markets at highly accretive EBITDA margins.
The acquisition is expected to be modestly accretive to EPS in the first three years and close in 4Q21.
Trane Technologies plans to fund the acquisition with available cash on hand.
Trane Technologies held cash and cash equivalents of $2.91 billion as of June 30, 2021.
"Farrar Scientific has revolutionized ultra-low temperature control for biopharmaceutical companies and become a critical supplier to large pharma customers. It brings technologies that meet critical needs in the addressable healthcare manufacturing and bioprocessing market, which is expected to grow to $1.65 billion by 2023," commented Dave Regnery, CEO of Trane Technologies.
Price Action: TT shares closed lower by 0.05% at $190.07 on Friday.