IDEX (IEX) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition targets a leader in critical flow control and precision microporous filtration, enhancing capabilities in applied material science and micro-precision solutions for high-value end markets such as semiconductors, energy transition, medical technologies, space and defense, and water purification.

• Complements prior acquisitions and existing strengths, supporting both organic and inorganic growth strategies.

• Strong cultural fit and alignment with the acquirer's values and operating philosophy.

• Mott's expertise in highly engineered, mission-critical solutions and sintered porous material structures supports innovation and collaboration across the combined portfolio.

• Enhances ability to deliver innovative, customized, and highly technical solutions essential to customer product performance.

Financial terms and conditions

• Cash consideration totals $1 billion; after $100 million in expected tax benefits, the net transaction value is $900 million.

• The purchase price represents a 19x multiple of forecasted 2024 EBITDA and a mid-teens multiple for 2025 EBITDA.

• Funded through cash on hand, credit facility borrowing, and potential debt issuance; net leverage expected to be 1.8x at closing.

• Transaction is expected to be accretive to adjusted EPS in 2026 and deliver double-digit returns by year five post-close.

• Expected to generate $200 million revenue and low-20s EBITDA margin in 2024.

Synergies and expected cost savings

• Anticipated commercial and new product development synergies due to complementary expertise and market focus.

• Significant leverage and margin expansion expected through the application of the acquirer's operating model and 80/20 philosophy.

• EBITDA margin improvement of 400-600 basis points projected by the end of 2026.

• Mott's customer base and technical expertise expected to create additive go-to-market opportunities and cross-functional product offerings.