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DAVIDSON, N.C. - Ingersoll Rand Inc. (NYSE:IR), a global provider of flow creation and industrial solutions with a market capitalization of $37.31 billion, has announced the acquisition of SSI Aeration, Inc., a move aimed at expanding its wastewater treatment capabilities. According to InvestingPro data, the company has demonstrated solid revenue growth of 7.18% over the last twelve months. This strategic acquisition is set to enhance Ingersoll Rand’s product lineup with SSI’s engineered membrane diffusers and aeration systems, which are designed for energy efficiency.
SSI Aeration, recognized for its innovative wastewater treatment plant equipment, brings in approximately $30 million in annual revenue. Its integration into Ingersoll Rand’s Industrial Technologies and Services segment is expected to provide customers with more comprehensive solutions, combining technologies like low-pressure compressors with SSI’s aeration offerings for increased productivity and energy efficiency.
Vicente Reynal, chairman and CEO of Ingersoll Rand, emphasized the importance of inorganic growth to the company’s strategy and expressed enthusiasm about expanding their presence in the wastewater treatment market through this acquisition. The purchase was made at an attractive multiple of approximately 10 times SSI’s projected 2024 Adjusted EBITDA. Based on InvestingPro analysis, Ingersoll Rand currently trades at an EV/EBITDA multiple of 21.5x, suggesting the SSI acquisition was secured at a favorable valuation. InvestingPro’s Fair Value analysis indicates the stock is currently overvalued, with 11 analysts recently revising their earnings expectations downward.
The acquisition not only extends Ingersoll Rand’s capabilities but also creates opportunities for accelerated growth by granting access to municipal markets. With manufacturing facilities in the United States, South Korea, and India, SSI’s global footprint is poised to enhance Ingersoll Rand’s reach in the sector.
Ingersoll Rand has a reputation for delivering exceptional performance and durability in mission-critical solutions, supported by over 80 respected brands. The company’s commitment to making life better for its stakeholders is reflected in its continuous pursuit of expertise, productivity, and efficiency. InvestingPro data shows the company maintains a healthy financial position with a current ratio of 2.36 and operates with moderate debt levels, earning an overall Financial Health score of "GREAT." For deeper insights into Ingersoll Rand’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
This news is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. Actual results may differ from current expectations due to various factors, including but not limited to economic conditions, regulatory changes, and other risks detailed in Ingersoll Rand’s filings with the Securities and Exchange Commission.
In other recent news, Ingersoll-Rand saw significant attention from analysts. CFRA upgraded the company’s stock from Sell to Hold, with expectations of accelerated organic sales growth due to increased capital equipment spending. The firm’s projected earnings per share (EPS) for 2026 is $3.87, aligning with Ingersoll-Rand’s historical long-term forward average. However, CFRA later downgraded the stock to Sell, citing overvaluation and fluctuating organic sales. The new price target of $90 reflects a valuation of 25.5 times the anticipated 2025 EPS of $3.54.
Ingersoll-Rand also reported strong third-quarter results for 2024, with a 10% increase in total orders and a 7% rise in revenue year-over-year. Adjusted EBITDA rose by 15% to $533 million, and EPS grew by 9% to $0.84. Meanwhile, Baird lowered its price target for Ingersoll-Rand from $114.00 to $109.00, maintaining an Outperform rating. These recent developments reflect the ongoing changes in the industrial manufacturing landscape.
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