ITT moves to acquire Axtone
Written by Kyra Senese, Managing Editor
ITT Inc.
New York-based global manufacturing company ITT Inc. has announced an agreement through which it will acquire Axtone, a leading manufacturer of highly engineered and customized components for railway and other harsh-environment industrial markets.
Representatives say the transaction carries a cash consideration of about $118 million, which will primarily be financed through the company’s foreign cash ($1.09 USD per 1 Euro). The final purchase cost is subject to a customary net working capital adjustment, and the transaction is anticipated to close in the first quarter of 2017.
Axtone says the Poland-based company expects full-year 2016 revenues of approximately $80 million with an adjusted EBITDA of approximately $14 million. The transaction is expected to grow ITT’s earnings in the first full year after closing.
ITT, headquartered in White Plains, N.Y., says the acquisition will complement its legacy KONI brand because Axtone produces energy absorption solutions that act as crucial safety technologies, such as springs, buffers and coupler components. ITT also says the company generated 2015 revenues of $2.5 billion.
“Expanding our strong positions across the transportation industry—including railway, aerospace and automotive—is key to ITT’s strategy,” said ITT CEO and President Denise Ramos. “The addition of Axtone’s high-quality portfolio and leading technologies will serve to further position our growing Motion Technologies business as a global transportation leader with strong capabilities and reach to provide a premier experience to our customers.”
Luca Savi, president of ITT’s Motion Technologies, says the agreement reflects ITT’s commitment to enhancing the company’s global leadership position in railway components.
“Axtone will complement our current portfolio, expand our global railway presence and grow our position in the profitable aftermarket,” Savi said. “It will also provide another opportunity to deploy our Motion Technologies management system to create value through operational excellence. We look forward to the opportunity to bring together two outstanding teams with a shared commitment to innovation, quality and unrivaled performance.”
