Atmus Filtration Technologies to Acquire Koch Filter Corporation

Core Viewpoint - Atmus Filtration Technologies Inc. has announced its acquisition of Koch Filter Corporation for $450 million in cash, aiming to establish a strong industrial air filtration platform and access a growing customer base across various end-markets [1][2]. Financial Summary - The acquisition is expected to be accretive to Atmus' Adjusted EPS and Adjusted EBITDA margin in 2026, with a projected high-single-digit ROIC by 2028 [2]. - The purchase price represents a 13.9x multiple based on Koch Filter's Adjusted EBITDA for the fiscal year ending September 30, 2025. After adjusting for expected tax benefits, the net transaction value is approximately $395 million, equating to a 10.9x multiple [2]. Strategic Implications - The acquisition will enhance Atmus' growth by expanding its presence in the industrial air filtration market, particularly in sectors such as industrial and commercial HVAC, data centers, and power generation [3]. - Koch Filter's extensive portfolio includes various filtration systems designed to improve indoor air quality and system performance, which aligns with Atmus' focus on reliability and customer service [3]. Transaction Details - The transaction will be funded through a combination of cash on hand and borrowings under Atmus' credit facility, with an expected closing in the first quarter of 2026, pending customary closing conditions [4]. Company Background - Atmus Filtration Technologies Inc. is a global leader in filtration and media solutions, with over 65 years of experience in designing and manufacturing filtration solutions across multiple industries [6]. - The company is headquartered in Nashville, Tennessee, and employs approximately 4,500 people globally [7].