(Reuters) -Ingersoll Rand will buy ILC Dover (NYSE:DOV) from investment firm New Mountain Capital for about $2.33 billion, the air compressor maker said on Monday, bolstering its presence in the life sciences markets.
ILC, best known for being the primary supplier of spacesuits for NASA, makes products that are used for safe handling of pharmaceutical agents during drug manufacturing processes.
"Through ILC, we will get access to approximately 1,000 customers in the broader life science and healthcare sectors, where we can leverage our demand generation capabilities to drive incremental growth in other Ingersoll Rand (NYSE:IR) product lines like compressors," CEO Vicente Reynal said in a statement.
Ingersoll Rand will establish a life sciences platform within its Precision and Science Technologies segment consisting of the company's life science-focused brands plus ILC.
ILC CEO Corey Walker will lead the newly created platform and join the Ingersoll Rand leadership team. It will have about $700 million in revenue and will enable further focus in life sciences, a key strategic area for the company, Ingersoll said.
The deal, expected to close in the second quarter, includes an earnout tied to the achievement of select operating efficiency metrics in 2024.