Atmus Filtration Technologies Inc. closed its acquisition of Koch Filter Corporation on January 7, 2026, paying $450 million in cash to create a new Industrial Solutions segment that will house Koch’s HVAC, data‑center, and power‑generation filtration lines.
The deal broadens Atmus’s reach into high‑growth industrial air‑filtration markets, leveraging Koch’s established customer base and product portfolio. Management expects the transaction to be accretive to adjusted earnings per share and adjusted EBITDA margin in 2026, with a projected high‑single‑digit return on invested capital by 2028.
Prior to the acquisition, Atmus reported Q4 2024 net sales of $407 million and an adjusted EPS of $0.58, while full‑year 2024 sales totaled $1.67 billion with an adjusted EPS of $2.50. Gross margin rose to 27.7% from 26.6% in 2023, and adjusted EBITDA margin reached 19.7% in 2024, reflecting pricing power and volume growth that offset currency headwinds.
The new Industrial Solutions segment will complement Atmus’s existing residential and commercial filtration businesses. Koch’s $156 million revenue in FY 2025 and its strong presence in commercial, industrial, and institutional markets provide immediate scale and cross‑selling opportunities that are expected to lift overall margin performance.
CEO Steph Disher said, “We are excited to welcome the Koch Filter team to Atmus. Together, we are committed to unlocking our growth potential and executing our strategy of expanding into industrial filtration markets.” He also noted that the company’s Q4 2024 results were driven by higher volume and pricing, with a focus on delivering long‑term shareholder value through execution and cash returns.
JPMorgan upgraded Atmus from Neutral to Overweight and raised its price target to $60, citing the strategic acquisition as a key driver of the company’s future growth and profitability. The upgrade reflects confidence that the integration will generate synergies and strengthen Atmus’s competitive position.
The acquisition is expected to boost Atmus’s adjusted EPS and EBITDA margin in 2026, with the high‑single‑digit ROIC forecast driven by cost synergies, cross‑selling, and scale efficiencies that will be realized as the new Industrial Solutions segment matures.
By adding a robust industrial air‑filtration platform, Atmus positions itself to capture demand in HVAC, data‑center, and power‑generation markets, reinforcing its long‑term growth trajectory and enhancing shareholder value.
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