Howden, a leading global provider of mission critical air and gas handling products, technologies and services, has entered into an agreement with EnPro Industries (NYSE: NPO) to acquire Compressor Products International (“CPI”), a leading provider of aftermarket components and services to the global reciprocating compressor market. This will be Howden’s sixth acquisition in 2021 and is expected to close following customary regulatory clearances and approvals.
CPI, headquartered in Houston, Texas, USA, has a diverse, global blue-chip customer base with sales primarily in North America, Europe and Asia. It is a manufacturer of precision-engineered, custom aftermarket products and its broad product offering is critical to the longevity, efficiency and safety of reciprocating compressors.
The acquisition of CPI is well aligned with Howden’s strategy of expanding its global aftermarket presence in the compressor market. By leveraging CPI’s strategically located service centres, Howden will expand its aftermarket services and coverage across North America and Europe. CPI’s valves and aftermarket products are complementary and strategically important additions to Howden’s existing aftermarket compressor technology portfolio. As a result of this acquisition, Howden’s addressable markets will increase by $1 billion.
As part of Howden, CPI will be able to access growth opportunities through additional technology support from Howden and by leveraging Howden’s existing global distribution and services network in China, Asia Pacific and South Africa. With CPI’s predominantly aftermarket revenues, this acquisition will be accretive to both Howden’s aftermarket mix and overall margins.
This acquisition also reinforces Howden’s role in supporting the ongoing energy transition towards renewable sources of energy. Reciprocating compression technology is critical to the energy transition, with applications in hydrogen production and infrastructure as well biofuel production. Howden will leverage CPI’s reciprocating compressor technology to support customers through the energy transition in these critical applications.
CPI’s technology, expertise and aftermarket presence, is an excellent fit within Howden, and will allow us to best serve customers looking to improve the performance and extend the life of their vital compressor assets across a wide range of industries. The synergies for both organisations and the positive impact for the combined customer base is significant. We look forward to welcoming the CPI team into Howden upon closing of the transaction.
Howden’s growth strategy aligns to several key megatrends such as the energy transition from fossil fuels to renewables, urbanisation and growth in infrastructure, IoT technology enabled services, changing demographics, as well as increases in the demand for natural resources. With an agile business model and teams on the ground globally, Howden keeps its customers at the forefront of new technologies and processes as it adds value through innovation and partnership.