Atmus Filtration Technologies has completed its acquisition of Koch Filter Corporation, expanding beyond vehicle and equipment filtration into industrial air filtration and related end markets, including commercial and industrial HVAC, data centers, and power generation.
The company said it paid approximately $450 million in cash for Koch Filter, purchasing the business from Air Distribution Technologies, Inc., a portfolio company of Truelink Capital. The final price remains subject to customary purchase price adjustments.
With the transaction closing, Atmus is forming a new Industrial Solutions segment, with Koch Filter reporting into that unit. Atmus named Rakesh Gangwani, senior vice president of strategy, to lead the segment as president of Industrial Solutions. Koch Filter President Mark Mattingly will continue to run the Koch Filter business and will report to Gangwani, according to the company.
To support the deal and its broader financing needs, Atmus simultaneously entered into an amended and restated five-year credit facility totaling $1.5 billion. The facility includes a $500 million revolving credit facility and a $1 billion term loan. Atmus said the acquisition was funded through a combination of cash on hand and borrowings under the amended and restated credit facility.
Atmus reiterated prior expectations that the Koch Filter acquisition will be accretive to adjusted earnings per share and adjusted EBITDA margin in 2026, and that it is targeting a high-single-digit return on invested capital by 2028.
Atmus, headquartered in Nashville, said it has more than 65 years of experience in filtration and media solutions and employs roughly 4,500 people globally, serving customers across on- and off-highway vehicle and equipment markets as well as the aftermarket.
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“We are excited to welcome the Koch Filter team to Atmus. Together, we are committed to unlocking our growth potential and executing our strategy of expanding into industrial filtration markets.”
Steph Disher, Chief Executive Officer, Atmus Filtration Technologies Inc.
