ITT Expands Market Reach With $395M Acquisition Of Denmark's Svanehøj Group: What's On The Cards?

Critical components manufacturer ITT Inc ITT has agreed to acquire privately held Svanehøj Group A/S for about $395 million.

Svanehøj provides liquid and cryogenic pumps for liquefied gas applications. Its product portfolio primarily consists of deepwell gas cargo pumps, fuel and energy pumps, and tank control systems.

Founded in 1928, Svanehøj employs approximately 400 professionals and operates in Denmark, Singapore, and France. About half of its annual sales are to customers in Europe, followed by Asia Pacific, the Americas, and the rest of the world. The company generated ~$140 million in sales in 2022.

Svanehøj's products manage critical liquids for the energy transition, including ammonia, liquefied petroleum gas (LPG), liquefied natural gas (LNG), methanol, hydrogen and CO2.

Svanehøj will become part of ITT's Industrial Process (IP) segment, which focuses on highly engineered pumps, valves and aftermarket services.

The transaction is expected to close in the first quarter of 2024, subject to the receipt of customary regulatory approvals. 

ITT held $463 million in cash and equivalents as of July 1, 2023.

Price Action: ITT shares closed higher by 0.66% at $93.97 on Wednesday.