KPS Capital Partners says it has signed a definitive agreement to acquire air and gas handling products and services company Howden for an enterprise value of $1.8 billion.
The company will buy the Scotland-based company from Colfax Corp, it said, paying $1.66 billion in cash and assuming $140 million in “assumed liabilities and minority interest”.
“Based in Glasgow, Scotland, Howden has a 160 year heritage as a world-class application engineering and manufacturing company with a presence in 32 countries,” KPS said. It manufactures fans, compressors, heat exchangers, steam turbines, and other air and gas handling equipment, and provides service and support to customers around the world. The company has over 5,300 employees, including over 650 engineers and 22 manufacturing facilities in 12 countries.
Raquel Palmer, Co-Managing Partner of KPS, said: “We are thrilled to have the opportunity to own and support Howden as the company continues its path of transformation and growth. Howden is a formidable company that benefits from many positive secular trends, including increasingly greater environmental standards, the need for energy conservation and the trend toward urbanisation, especially in developing economies.”
At the time, the company said: “This acquisition is a further continuation of Howden’s total mine ventilation solutions strategy to provide the global mining industry with a portfolio of best-in-class products, controls and services that gives customers the most efficient solution to their ventilation needs.”
This followed the purchase of Chasm Consulting and its Ventsim software (pictured), in 2017, which provided Howden with a full suite of solutions for mine ventilation, from modelling and design software to full turnkey projects including main and auxiliary fans, instrumentation, automation and Ventilation on Demand, via the Simsmart product line.
Palmer said KPS intends to capitalise on the company’s “many attractive” growth opportunities, including strategic acquisitions, and to support its investment in research and development, technology and new product development.
Ian Brander, Chief Executive Officer of Howden, said: “We are excited about our future as an independent company under KPS’ ownership. KPS is an ideal partner, given its demonstrated track record of recognising and growing world-class industrial companies. KPS’ commitment to continuous improvement, its global network, access to capital and significant resources will enable us to continue to grow our business and provide our customers with market-leading products and solutions.”
Completion of the transaction is expected in the second half of 2019 and is subject to customary closing conditions and approvals.