Enpro Drops $210M In New Acquisition That Opens Doors to Cryogenics, Clean Energy Industries

Enpro Inc NPO penned a deal to acquire Advanced Micro Instruments, Inc. for $210 million in cash.

AMI provides application-specific analyzers and sensing technologies that monitor critical parameters to maintain infrastructure integrity, enable process efficiency, enhance safety, and facilitate the clean energy transition. 

The deal price represents around 13x of normalized 2023 EBITDA. Post transaction closure, AMI will be included in the NPO's Sealing Technologies segment, thereby boosting the segment's portfolio of products and solutions for safeguarding critical environments. 

The buyout is projected to be accretive to the segment revenue growth and Enpro's adjusted diluted earnings per share.

Eric Vaillancourt, President and Chief Executive Officer said, "Acquiring AMI, an industry leader, will build on our strategy to invest in products and technologies that safeguard critical environments in key secular growth markets."

"AMI's innovative analyzer and sensor solutions will add to our existing portfolio of critical process technologies in the Sealing Technologies segment, and this acquisition will be an important step forward in expanding our capabilities into compositional analysis."

As of September 30, cash and cash equivalent stood at $329.8 million. 

Price Action: NPO shares closed higher by 0.79% at $160.12 on Wednesday.