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Ingersoll Rand to buy ILC Dover from New Mountain for $2.3B

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Illustration: Brendan Lynch/Axios

New Mountain Capital will sell medical device materials maker ILC Dover to Ingersoll Rand for $2.3 billion.

Why it matters: ILC will sell for a 17x EBITDA multiple before earn-outs — a rich valuation indicating the ongoing interest in life sciences.

  • The deal includes an upfront cash purchase price of approximately $2.325 billion, with earn-outs tied to key metrics.

How it works: Founded in 1947, ILC is most known for being a supplier of spacesuits for NASA and making products used for safe handling of pharmaceutical agents during drug manufacturing processes.

Catch up quick: New Mountain Capital backed the company in January 2020 for an undisclosed price.

  • Under New Mountain, ILC acquired Flexan, a contract design and manufacturing organization that serves many top global medical device companies, in 2021.

What's next: Ingersoll Rand will establish a life sciences platform inside its precision and science technologies segment.

  • 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.

The bottom line: Life sciences continue to drive overall health care M&A, with plenty of strategics strapped with cash and ready to buy.

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