Enpro Announces Sale of CPI to Howden Group
CHARLOTTE, N.C.--(BUSINESS WIRE)-- EnPro Industries, Inc. (NYSE: NPO), an industrial technology company, today announced agreements for the sale of its Compressor Products International (CPI) business unit (and exclusive negotiations with respect to the French operations of the CPI business unit) to Howden Group, a leading global provider of mission critical air and gas handling products and services with headquarters in Glasgow, UK. The aggregate purchase price for the transaction is $195 million, subject to typical closing date adjustments. CPI is a leading provider of manufactured products and services for reciprocating compressors primarily serving the global petrochemical and oil & gas industries. The purchase price equates to approximately 10.4x adjusted LTM EBITDA. The transaction is subject to customary closing conditions, including regulatory reviews, and is expected to close in the first quarter of 2022.
This strategic action continues Enpro’s portfolio transformation toward niche industrial technology products and services, with a focus on faster growing end-markets such as semiconductor, photonics, food and pharma, and aerospace.
“We would like to thank the CPI team for their countless contributions to Enpro over the last 15 years and wish them continued success with Howden,” said Eric Vaillancourt, Interim President and CEO of Enpro. “This transaction bolsters our already strong balance sheet as we continue to invest in our growth priorities to drive sustainable long-term value for the benefit of our shareholders, employees and other stakeholders.”
CPI is included in Enpro’s Engineered Materials segment. Following the completion of the divestiture, the segment will be composed of GGB, an engineered polymer bearings solutions business, and Garlock Pipeline Technologies (GPT), a provider of mechanical solutions for pipeline customers.
Robert W. Baird & Co is serving as the exclusive financial advisor to Enpro. Robinson Bradshaw is Enpro’s lead legal counsel with Bird and Bird supporting internationally.
About Enpro
Enpro is an industrial technology company focused on niche applications across many end-markets, including semiconductor, photonics, industrial process, aerospace, food and pharma and life sciences. For more information about Enpro, visit the company’s website at http://www.enproindustries.com.
To read the full press release visit https://www.enproindustries.com/for-investors/pres...