Atmus to acquire Koch Filter for $450 million in cash

NASHVILLE - Atmus Filtration Technologies Inc. (NYSE:ATMU) announced Monday it has entered into a definitive agreement to acquire Koch Filter Corporation for $450 million in cash, subject to customary adjustments. The filtration company, currently valued at $3.9 billion with shares trading at $47.82, has seen its stock rise over 31% in the past six months.

The acquisition will expand Atmus’s product portfolio into industrial air filtration, providing access to established customers in commercial and industrial HVAC, data centers, and power generation markets. Koch Filter, headquartered in Louisville, Kentucky, generated $156 million in revenue in the fiscal year ended September 30, 2025, representing about 9% of Atmus’s current annual revenue of $1.72 billion.

The transaction represents a 13.9x multiple based on Koch Filter’s Adjusted EBITDA for fiscal year 2025. When adjusted for expected tax benefits, the net transaction value is approximately $395 million, representing a 10.9x multiple after tax benefits and cost synergies. For context, Atmus itself currently trades at an EV/EBITDA multiple of 12.98x based on its $324.4 million in EBITDA for the last twelve months.According to InvestingPro, Atmus is currently trading near its Fair Value estimate, with several financial indicators suggesting strong operational health. InvestingPro offers 10 additional tips about Atmus’s financial position that could provide valuable context for investors evaluating this acquisition.

"The acquisition of Koch Filter will accelerate Atmus’s growth by expanding into the industrial air filtration market," said Steph Disher, Chief Executive Officer of Atmus, according to the company’s press release.

Koch Filter, founded in 1966, manufactures a range of filtration products including HVAC, HEPA, carbon, and specialty filtration systems designed to improve indoor air quality and optimize system performance.

The acquisition is expected to be funded through a combination of cash on hand and borrowings under Atmus’s credit facility, potentially including an upsize of that facility. The transaction is anticipated to close in the first quarter of 2026, subject to customary closing conditions. Atmus appears well-positioned to handle this financial commitment with a solid current ratio of 2.14 and what InvestingPro identifies as a moderate debt level, with a debt-to-equity ratio of 1.84.

Atmus expects the acquisition to be accretive to its Adjusted EPS and Adjusted EBITDA margin in 2026 and to achieve high-single-digit return on invested capital by 2028.

Benesch is serving as legal advisor and Jefferies LLC as financial advisor to Atmus, while Lincoln International LLC is acting as financial advisor to Air Distribution Technologies and Truelink Capital, the current owner of Koch Filter.

In other recent news, Atmus Filtration Technologies reported impressive financial results for the third quarter of 2025. The company posted an adjusted earnings per share of $0.69, significantly surpassing analysts’ expectations of $0.53. Revenue also exceeded forecasts, reaching $448 million compared to the anticipated $413 million. These strong results highlight Atmus Filtration Technologies’ robust performance in the market. Additionally, the company announced a quarterly dividend of $0.055 per common share, payable on December 10, 2025, to shareholders recorded by November 25, 2025. This dividend declaration reflects the company’s ongoing commitment to returning value to its shareholders. Investors and analysts alike are closely monitoring these developments as they assess the company’s financial health and future prospects.

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