Trane Technologies (TT), a climate innovator, announced Monday its agreement to acquire Farrar Scientific, a provider of ultra-low temperature control for biopharmaceutical and other life science applications.
The upfront transaction value is $250 million, with a total transaction value of up to $365 million. This includes $115 million in additional payout potential in 2025 tied to the attainment of key financial targets.
The transaction includes Farrar Scientific’s assets, including its patented ultra-low temperature control technologies, a development and assembly operation in Marietta, Ohio, and its specialized team of employees.
The acquisition is expected to be modestly accretive to earnings per share in the first three years. The transaction is expected to close in the fourth quarter of 2021, subject to regulatory approval and customary closing conditions.
The company expects to fund the deal with available cash on hand.
Trane has appointed Holly Paeper, current vice president of Strategic Sales, Commercial HVAC Americas, as president of the new business, Trane Technologies Life Science Solutions. The new unit will operate as part of the company’s Commercial HVAC Americas business unit.
Following the acquisition, Farrar Scientific founder and chief technology officer Scott Farrar will serve as vice president of technology and innovation in Trane Technologies’ Life Science Solutions, and Jim Vuksic, Farrar Scientific’s president and CEO, will serve as an advisor to the team.
Dave Regnery, CEO of Trane Technologies, said, “Farrar Scientific has revolutionized ultra-low temperature control for biopharmaceutical companies and become a critical supplier to large pharma customers. It brings technologies that meet critical needs in the addressable healthcare manufacturing and bioprocessing market, which is expected to grow to $1.65 billion by 2023.”
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