NORTHBROOK, Ill. (AFX) - Idex Corp., a maker of pumps and valves used to make fuel and chemicals, on Monday said it will buy specialty pump and valve maker Banjo Corp. for $183 million in cash.
Crawfordsville, Ind.-based Banjo's 'growth in attractive niche segments -- such as chemical, alternative fuels and other emerging agricultural and industrial applications -- provides for continued organic growth opportunities,' said Idex Chairman and Chief Executive Larry Kingsley in a statement.
Idex estimated that Banjo -- which generates reported revenue of about $44 million -- and its purchases of EPI and Jun-Air will produce annualized sales of about $100 million with operating margins ranging from 23 percent to 25 percent. The acquisitions are expected to boost Idex earnings in the first year of operations.
The Banjo transaction is expected to close in October, subject to regulatory approval. Idex expects to fund the deal with cash on hand and a $600 million credit line.
Shares of Idex fell 45 cents to $40.73 in morning trading on the New York Stock Exchange.
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