Enpro Inc. (NYSE: NPO), a prominent industrial technology company, has unveiled plans to acquire Advanced Micro Instruments, Inc. (AMI) in a definitive agreement that signals a strategic move towards enhancing their technological prowess in critical environmental monitoring.
AMI, a trailblazer in highly-engineered analyzers and sensing technologies, has been pivotal in monitoring essential parameters crucial for maintaining infrastructure integrity, ensuring process efficiency, bolstering safety measures, and facilitating the transition towards clean energy solutions. The $210 million all-cash acquisition positions Enpro to delve deeper into specialized analytical technologies, valuing AMI at around 13 times the normalized 2023 EBITDA.
Based in Costa Mesa, California, AMI caters to a diverse clientele spanning midstream natural gas, biogas, industrial processing, cryogenics, food processing, laboratory, wastewater, and aerospace sectors. Their range of oxygen, hydrogen sulfide, and moisture analyzers, coupled with proprietary sensing capabilities, has played a pivotal role in detecting contaminants across various processes, enabling operators to curtail flaring and reduce CO2 emissions significantly.
Once integrated, AMI will bolster Enpro’s Sealing Technologies segment, fortifying its array of products and solutions tailored to safeguarding critical environments. This strategic acquisition is anticipated to drive segmental revenue growth and bolster profitability, positively impacting Enpro’s adjusted diluted earnings per share.
Eric Vaillancourt, President and CEO of Enpro, expressed enthusiasm about the acquisition, citing, “AMI’s innovative analyzer and sensor solutions align seamlessly with our commitment to investing in technologies that protect critical environments in burgeoning markets. This addition will expand our capabilities into compositional analysis, complementing our existing portfolio in the Sealing Technologies segment.”
Kevin Bates, President and CEO of AMI, echoed Vaillancourt’s sentiments, noting, “Joining forces with Enpro marks an exciting new chapter for AMI. Enpro’s strategic vision and technological expertise across diverse markets align perfectly with our trajectory. We foresee accelerated growth and advancement through this collaboration.”
The transaction is slated for closure in early 2024, contingent upon limited closing conditions, including regulatory approvals.
