Atmus Filtration Technologies Completes $450M Koch Filter Acquisition, Secures $1.5B Credit Facility

summarizeSummary

Atmus Filtration Technologies Inc. completed its $450 million acquisition of Koch Filter Corporation, a strategic move to expand its industrial air filtration business, and simultaneously secured a new $1.5 billion credit facility to support the transaction and refinance existing debt.

check_boxKey Events

• Acquisition Completed

  Atmus Filtration Technologies Inc. completed the acquisition of Koch Filter Corporation for approximately $450 million in cash.

• Strategic Market Expansion

  The acquisition establishes Atmus' industrial air filtration platform and expands its portfolio into high-growth end-markets, including commercial and industrial HVAC, data centers, and power generation.

• New Credit Facility Secured

  Atmus entered into an amended and restated five-year $1.5 billion credit facility, comprising a $1 billion term loan and a $500 million revolving credit facility, both maturing on January 7, 2031.

• Financing Details

  The term loan proceeds will refinance approximately $570 million of outstanding debt from the previous credit agreement and partially finance the Koch Filter acquisition. The revolving credit facility increased by $100 million from the prior agreement.

auto_awesomeAnalysis

Atmus Filtration Technologies Inc. has successfully completed its strategic acquisition of Koch Filter Corporation for approximately $450 million. This acquisition is a significant move, establishing Atmus' industrial air filtration platform and expanding its presence into high-growth markets such as commercial and industrial HVAC, data centers, and power generation. Concurrently, the company secured a new five-year, $1.5 billion amended and restated credit facility, consisting of a $1 billion term loan and a $500 million revolving credit facility, maturing in 2031. The financing will be used to refinance existing debt and fund the acquisition, demonstrating strong financial backing for this strategic expansion. The acquisition is projected to be accretive to Adjusted EPS and Adjusted EBITDA margin in 2026, with a high-single-digit return on invested capital (ROIC) expected by 2028.