EnPro Industries To Acquire NxEdge For $850M

  • EnPro Industries, Inc. NPO agreed to acquire NxEdge, Inc. from Trive Capital for $850 million in cash. NxEdge is an advanced manufacturing, cleaning, coating, and refurbishment business focused on the semiconductor value chain.
  • NxEdge will become part of Enpro's Advanced Surface Technologies (AST) segment, and the combined business will offer differentiated, integrated solutions with expanded customer relationships and a diversified geographic reach.
  • NxEdge is expected to generate ~$190 million in revenue and an adjusted EBITDA of $70 million for 2021. Enpro anticipates the acquisition to be immediately accretive to its total sales growth, adjusted EBITDA margin, and adjusted EPS.
  • For 2022, Enpro expects NxEdge to contribute ~$1.70 in adjusted EPS based on current interest rates, 30% above the mid-point of the company's 2021 adjusted EPS guidance range of $5.35-$5.55.
  • Enpro expects to finance the all-cash acquisition with a combination of cash, borrowings under its revolving credit facility, and additional term loan debt. The company anticipates that its net leverage ratio will be approximately 3.7x following the completion of this transaction.
  • EnPro Industries held cash and equivalents of $330 million as of September 30, 2021.
  • The company expects the transaction to close by the end of 2021.
  • Price Action: NPO shares closed lower by 0.35% at $92.18 on Thursday.
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