Enpro Inc. Expands its Portfolio with Acquisition of Advanced Micro Instruments, Inc.

Enpro Inc., a leading industrial technology company, has announced its acquisition of Advanced Micro Instruments, Inc. (AMI), a provider of highly-engineered analyzers and sensing technologies. This strategic move will enable Enpro to enhance its product offerings and strengthen its position in key growth markets. The acquisition is expected to be highly beneficial for both companies and will contribute to Enpro's revenue growth and profitability.

Based in Costa Mesa, California, AMI caters to a wide range of industries, including natural gas, biogas, industrial processing, cryogenics, food processing, laboratory, wastewater, and aerospace. The company's portfolio includes oxygen, hydrogen sulfide, and moisture analyzers, as well as proprietary sensing capabilities that detect contaminants in various processes. These technologies play a crucial role in maintaining infrastructure integrity, improving process efficiency, enhancing safety, and supporting the clean energy transition. By acquiring AMI, Enpro will expand its capabilities in compositional analysis and further establish itself as a leader in critical process technologies.

The acquisition will involve a cash transaction of $210 million, valuing AMI at approximately 13 times its normalized 2023 EBITDA. Upon closing, AMI will become part of Enpro's Sealing Technologies segment, which focuses on safeguarding critical environments. This segment is expected to benefit from AMI's innovative analyzer and sensor solutions, adding to its existing product portfolio. Enpro anticipates that the acquisition will also have a positive impact on its adjusted diluted earnings per share.

Eric Vaillancourt, President and CEO of Enpro, expressed enthusiasm about the acquisition, stating, "AMI's industry-leading analyzer and sensor solutions align perfectly with our strategy to invest in products and technologies that protect critical environments in fast-growing markets." He added that the acquisition will open new opportunities for Enpro in compositional analysis and enable the company to capitalize on its combined capabilities with AMI.

Kevin Bates, President and CEO of AMI, shared his excitement about joining forces with Enpro, emphasizing that Enpro's strong presence in various growing markets makes it an ideal partner for accelerating AMI's growth. The two companies share a commitment to technological advancements and applied engineering, making them a perfect fit for collaboration.

The acquisition is expected to be finalized in early 2024, subject to regulatory approvals and other closing conditions. Enpro's focus on critical applications across diverse end-markets, including semiconductor, industrial process, commercial vehicle, sustainable power generation, aerospace, food and pharma, photonics, and life sciences, makes it well-positioned for continued success.

About Enpro

Enpro is an industrial technology company headquartered in Charlotte, North Carolina. It operates in various sectors, providing critical solutions to industries such as semiconductor, commercial vehicle, aerospace, sustainable power generation, and more. Enpro's commitment to innovation and its diverse end-market presence contribute to its success in delivering advanced products and technologies.

About Advanced Micro Instruments, Inc.

AMI is a majority-owned portfolio company of McNally Capital, LLC, a Chicago-based private equity firm. Based in Costa Mesa, California, AMI specializes in engineered analyzers and sensing technologies. Its products cater to industries such as natural gas, biogas, cryogenics, industrial processing, food processing, laboratory, wastewater, and aerospace. AMI's state-of-the-art analyzers and sensing capabilities help operators detect contaminants and ensure process efficiency while reducing CO2 emissions.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that may cause actual events and results to differ materially. Factors that could affect the closing of the acquisition and its outcomes include regulatory approvals, unexpected costs, and disruptions to Enpro's operations. Additional risks and uncertainties are described in Enpro's filings with the Securities and Exchange Commission. Enpro does not intend to update any forward-looking statements included in this press release.

In conclusion, Enpro's acquisition of Advanced Micro Instruments, Inc. marks an important milestone for both companies. It enables Enpro to expand its product portfolio and strengthen its position in key growth markets. The combined capabilities of Enpro and AMI will drive innovation, enhance customer offerings, and propel the clean energy transition forward. With this strategic move, Enpro is well-positioned for future success in the industrial technology sector.