Fill-Rite and Sotera brands to be acquired by Gorman-Rupp in $525-million deal.
By Andrew Joseph, Farms.com
Gorman-Rupp Company, an international manufacturer of pumps and pump systems, said it has entered into a definitive agreement to acquire the assets of Fill-Rite and Sotera, a division of Chicago-based Tuthill Corporation, for US$525 million. The transaction is expected to close in the second quarter of 2022.
With facilities in Fort Wayne, Indiana, and Lenexa, Kansa, the Fill-Rite and Sotera brands offer what the company’s call superior products and hold leadership positions in attractive niche pump markets.
Fill-Rite provides rugged, high performance liquid transfer pumps as well as a comprehensive line of mechanical and digital meters, precision weights and measures certified meters, hand pumps, hoses, nozzles, and accessories. For the 12 months ended March 31, 2022, Fill-Rite generated revenue of approximately $140 million and adjusted EBITDA of approximately $34.5 million, representing an adjusted EBITDA margin of 25%.
“We are extremely excited to welcome Fill-Rite’s impressive portfolio of mission-critical pumps and its outstanding team of employees to the Gorman-Rupp family,” said Scott King, President and Chief Executive Officer of Gorman-Rupp. “Altogether, with our combined capabilities, we expect our revenues to reach over $500 million annually—a significant milestone. In addition to the natural product adjacencies between Gorman-Rupp and Fill-Rite, we truly believe that the two companies are culturally aligned. We look forward to working with the Fill-Rite team to continue to drive shareholder value and to execute on our strategic business plan.”
Jay Tuthill, Chairman of Tuthill Corporation added: “I first learned about Gorman-Rupp when I was in high school. That was the Summer of 1969, and I was being given a crash course on ‘Who’s Who in the Pump Business’. Now, more than half a century later, I am thrilled to see Tuthill’s Fill-Rite business moving into the Gorman-Rupp orbit. From my first conversation with Jeff Gorman, it was clear we had a lot in common and that will make it easy for the Fill-Rite folks to quickly find their place within the world of Gorman-Rupp.”
Noted Jeff Gorman, Executive Chairman of Gorman-Rupp’s Board of Directors: “We are pleased to have found a partner that represents an excellent strategic fit for both companies, bringing together two pioneering flow control businesses with over 150 years of combined experience operating as market-leaders.”
He continued, “This exceptional opportunity fits well into Gorman-Rupp’s overall strategic plan to find well-suited opportunities for expansion and innovation.”