Benzinga | Sep 13, 2021 07:45AM EDT

Trane Technologies To Acquire Farrar Scientific For Total Up To $365M

* Trane Technologies PLC (NYSE:TT) has agreed to acquire Farrar Scientific for a total transaction value of up to $365 million, including a $250 million consideration upfront and a $115 million in additional payout potential.

* Farrar Scientific is a provider of ultra-low temperature control for biopharmaceutical and other life science applications.

* This acquisition expands Trane Technologies' capabilities in ultra-low temperature control; increases access to biopharma and other life science markets at highly accretive EBITDA margins.

* The acquisition is expected to be modestly accretive to EPS in the first three years and close in 4Q21.

* Trane Technologies plans to fund the acquisition with available cash on hand.

* Trane Technologies held cash and cash equivalents of $2.91 billion as of June 30, 2021.

* "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," commented Dave Regnery, CEO of Trane Technologies.

* Price Action: TT shares closed lower by 0.05% at $190.07 on Friday.