The acquisition aims to expand AMETEK’s industrial tech portfolio with $1.1 billion in annual sales and high recurring revenue.
AMETEK announced a $5 billion cash deal to acquire Indicor’s Instrumentation businesses, targeting strategic growth in its industrial technology segments. The transaction is expected to close in the second half of the year, pending regulatory approvals.
The acquired portfolio generates $1.1 billion in annual sales, with roughly 50% recurring revenue from aftermarket services. Historically, these businesses have grown at a 6% to 7% rate and align with AMETEK’s Electronic Instruments and Electromechanical divisions.
Management expects 10% to 12% annualized cost synergies by year three and anticipates the deal will be accretive to cash earnings in its first year. AMETEK plans to delever quickly post-close to manage leverage.