Fort Wayne Pump Manufacturer Acquired for $525M

Fort Wayne Pump Manufacturer Acquired for $525M

The Gorman-Rupp Company an international manufacturer of pumps and pump systems, announced that it has entered into a definitive agreement to acquire the assets of Fill-Rite and Sotera, a division of Chicago-based Tuthill Corporation, for $525 million. When adjusted for approximately $80 million in expected tax benefits, the net transaction value is approximately $445 million. Gorman-Rupp expects to fund the transaction with cash on-hand and new debt. Subject to customary closing conditions and necessary regulatory approvals, the transaction is expected to close in the second quarter of 2022.

With facilities in Fort Wayne, IN and Lenexa, KS, the Fill-Rite and Sotera brands carry strong legacies associated with 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.”

“I first learned about Gorman-Rupp when I was in high school,” said Jay Tuthill, Chairman of Tuthill Corporation. “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.”

“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,” commented Jeff Gorman, Executive Chairman of Gorman-Rupp’s Board of Directors. “This exceptional opportunity fits well into Gorman-Rupp’s overall strategic plan to find well-suited opportunities for expansion and innovation.”

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