Enpro Industries acquires LeanTeq Co., Ltd. (and LeanTeq LLC)

Enpro Industries acquired LeanTeq Co., Ltd. (and LeanTeq LLC) for $305 million, subject to working capital adjustment and reduction for net debt, a transaction completed in September 2019, structured as combination (cash with ~10% management rollover equity).

LeanTeq Co., Ltd. (and LeanTeq LLC) operates in Technetics Group (Sealing Products segment), is based in Taoyuan City, Taiwan (plus Milpitas, California, USA). LeanTeq is a privately held, Taiwan-based company that primarily provides refurbishment services for critical components and assemblies used in state-of-the-art semiconductor equipment used to produce the latest microchips for smartphones, autonomous vehicles, 5G, and artificial intelligence. Founded in 2011 and headquartered in Taoyuan City, Taiwan, LeanTeq has two locations in Taiwan and one in the United States (Milpitas / Silicon Valley, California) and approximately 260 employees. Aftermarket refurbishment services represent approximately 65% of LeanTeq's total sales.

Strengthens and expands EnPro's existing $100M+ presence in the semiconductor industry with a primary focus on the aftermarket; adds proprietary technology, capabilities and a highly differentiated service offering for semiconductor manufacturing equipment, aligning with EnPro's growth strategy focused on technical expertise, niche markets, mission-critical applications and significant aftermarket contribution.

Compelling growth and margin profile with a consistent cash generation track record; recurring aftermarket revenue enabled by Process of Record qualifications achieved through close partnership with OEMs; expected to be accretive to adjusted EPS in the first full year following closing. Adds differentiated semiconductor aftermarket capabilities to Technetics Group within the Sealing Products segment. Technetics Group (Sealing Products segment)

Advisory firms were not disclosed for this transaction.