IDEX Corporation (NYSE:IEX) today announced that it has entered
into a definitive agreement to acquire micro-precision technology
manufacturing company Muon B.V. and its subsidiaries (“Muon Group”)
for cash consideration of €700 million.
Based in the Netherlands, Muon Group manufactures highly precise
flow paths in a variety of materials that enable the movement of
various liquids and gases in critical applications for medical
technologies, semiconductor, food processing, digital printing and
filtration. The group includes LouwersHanique, Veco, Millux, Tecan
and Atul, which have critical technical expertise in precision and
tolerances for different materials, from metals and glass to
plastics and ceramics.
“Together, the Muon Group will expand upon a growing platform of
IDEX precision technology businesses, including those already part
of IDEX Health & Science, with unique technology and product
solutions for similar end-customers. The commercial synergy
potential between our health and science businesses and Muon Group
companies will yield expanded offerings to new and existing
customers,” IDEX Chief Executive Officer and President Eric
Ashleman said. “Muon Group is an IDEX-like business, producing
highly engineered products used in mission-critical applications
where customers demand exacting quality standards. Their companies
are leaders in their fields, and we are excited to welcome them and
their outstanding management team to the IDEX family.”
Like IDEX, Muon Group has strong connections to an array of
highly innovative, well-known OEMs, working in partnership like
members of an extended team to solve some of their most challenging
issues. This forms a strong base for ongoing growth through
innovation.
“The acquisition of Muon Group demonstrates our disciplined
capital deployment strategy that focuses on identifying
high-quality technology businesses that will enhance our strategy
and we believe will drive long term shareholder value,” Ashleman
said. “We expect Muon Group to thrive in our entrepreneurial
culture, while our decentralized model fosters decision-making
closest to the customer, producing excellent results.”
“All of us at Muon are excited to be joining forces with the
IDEX platform as we feel this is the best way to secure our
long-term growth ambitions. IDEX’s operating model and culture
match ours well, and their scale and resources will help us achieve
our targets faster,” Michiel Barendse, CEO of Muon Group said.
Muon Group is privately held by Rivean Capital, a European
mid-market private equity firm, which acquired the company in
2018.
With expected FY 2022 sales of approximately €140 million and
EBITDA margins of approximately 33 percent, Muon Group will join
the Scientific Fluidics & Optics group in IDEX’s Health &
Science Technology segment.
The transaction is expected to close in the fourth quarter,
subject to regulatory approvals and consultation with the Dutch
works council. This acquisition is expected to be funded by IDEX
using cash on hand and proceeds from its revolving credit
facility.
Use of Non-GAAP Financial Information
IDEX prepares its public financial statements in conformity with
accounting principles generally accepted in the United States of
America (GAAP). IDEX supplements certain GAAP financial performance
metrics with non-GAAP financial performance metrics. Management
believes these non-GAAP financial performance metrics provide
investors with greater insight, transparency and a more
comprehensive understanding of the financial information used by
management in its financial and operational decision-making because
certain of these non-GAAP metrics exclude items not reflective of
ongoing operations. Non-GAAP financial performance metrics should
not be considered a substitute for, nor superior to, the financial
data prepared in accordance with GAAP. EBITDA is calculated as net
income plus interest expense plus provision for income taxes plus
depreciation and amortization. EBITDA margin is calculated as
EBITDA divided by net sales.
IDEX has not provided a reconciliation of the expected EBITDA or
EBITDA margin contribution by Muon Group for FY 2022 because we are
unable to quantify certain amounts that would be required to be
included in Muon Group’s contribution to net income without
unreasonable efforts. In addition, IDEX believes such
reconciliation would imply a degree of precision that would be
confusing or misleading to investors.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking” statements within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended. Such forward-looking statements include
statements regarding the expected benefits of the acquisition of
Muon Group, the expected impact of the acquisition on IDEX’s
product offerings or proposed product offerings, IDEX’s combined
existing and new customers, the enhancement of IDEX’s business
strategy, integration plans, the expected growth opportunities and
synergies resulting from the acquisition, IDEX’s ability to achieve
its targets, the anticipated long term value to IDEX’s
shareholders, the projected earnings of the Muon Group and the
related impact on IDEX’s earnings, and the expected timing and
funding for the closing of the acquisition. These statements are
subject to inherent uncertainties and risks that could cause actual
results to differ materially from those anticipated at the date of
this press release. The risks and uncertainties include, but are
not limited to, the following: the impact of health epidemics and
pandemics, including the COVID-19 pandemic, and the impact of
related governmental actions, on IDEX’s ability to operate its
business and facilities, on its customers, on supply chains and on
the U.S. and global economy generally; economic and political
consequences resulting from terrorist attacks and wars, including
Russia's invasion of Ukraine and the global response to this
invasion, which, along with the ongoing effects of the COVID-19
pandemic, could have an adverse impact on IDEX's business by
creating disruptions in the global supply chain and by potentially
having an adverse impact on the global economy; levels of
industrial activity and economic conditions in the U.S. and other
countries around the world, including uncertainties in the
financial markets; pricing pressures, including inflation and
rising interest rates, and other competitive factors and levels of
capital spending in certain industries, all of which could have a
material impact on order rates and IDEX’s results; IDEX’s ability
to integrate the Muon Group and to acquire, integrate and operate
other acquired businesses on a profitable basis; the relationship
of the U.S. dollar to other currencies and its impact on pricing
and cost competitiveness; political and economic conditions in
foreign countries in which IDEX operates; developments with respect
to trade policy and tariffs; interest rates; capacity utilization
and the effect this has on costs; labor markets; supply chain
backlogs, including risks affecting component availability, labor
inefficiencies and freight logistical challenges; market conditions
and material costs; risks related to environmental, social and
corporate governance (“ESG”) issues, including those related to
climate change and sustainability; and developments with respect to
contingencies, such as litigation and environmental matters.
Additional factors that could cause actual results to differ
materially from those reflected in the forward-looking statements
include, but are not limited to, the risks discussed in the “Risk
Factors” section included in IDEX’s most recent annual report on
Form 10-K and IDEX’s subsequent quarterly reports filed with the
Securities and Exchange Commission (“SEC”) and the other risks
discussed in IDEX’s filings with the SEC. The forward-looking
statements included here are only made as of the date of this press
release, and management undertakes no obligation to publicly update
them to reflect subsequent events or circumstances, except as may
be required by law. Investors are cautioned not to rely unduly on
forward-looking statements when evaluating the information
presented here.
About IDEX
IDEX Corporation (NYSE: IEX) makes thousands of products and
mission-critical components that improve everyday life all around
you. If you enjoy chocolate, it quite possibly passed through a
Viking® internal gear pump at the candy factory. If you were ever
in a car accident, emergency workers may have used the Hurst Jaws
of Life® rescue tool to save your life. If your doctor ordered a
DNA test to predict your risk of disease or determine a course of
treatment, the lab may have used equipment containing components
made by IDEX Health & Science. Founded in 1988 with three
small, entrepreneurial manufacturing companies, we’re proud to say
that we now call over 45 diverse businesses around the world part
of the IDEX family. With more than 8,000 employees and
manufacturing operations in more than 20 countries, IDEX is a
high-performing, global company with nearly $2.8 billion in annual
sales, committed to making trusted solutions that improve lives.
IDEX shares are traded on the New York Stock Exchange under the
symbol “IEX”.
For further information on IDEX Corporation and its business
units, visit the company’s website at www.idexcorp.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20220912005956/en/
Investor Contact IDEX Corporation
Allison Lausas Vice President and Chief Accounting Officer +1
847-498-7070 investorrelations@idexcorp.com
Media Contact: IDEX Corporation
Mark Spencer +1 847-457-3793 mdspencer@idexcorp.com
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