Enpro Industries acquired NxEdge, Inc. for $850.0 million in cash, a transaction completed in December 2021, structured as all cash.
NxEdge, Inc. operates in Advanced Surface Technologies (AST), is based in Boise, Idaho, USA (facilities in Idaho and California). NxEdge is an advanced manufacturing, cleaning, coating, and refurbishment business focused on the semiconductor value chain, acquired from Trive Capital. Based in Boise, Idaho, it serves customers across the semiconductor supply chain, including top-tier global integrated device manufacturers (IDMs) and original equipment manufacturers (OEMs) from six main facilities located in Idaho and California, with vertically integrated capabilities and a robust aftermarket business.
The transaction marks a significant next step in Enpro's multi-faceted strategy to position itself in secularly growing, high-margin industrial technology-related businesses with aftermarket exposure and recurring revenue streams. Upon closing, NxEdge became part of Enpro's Advanced Surface Technologies (AST) segment, significantly enhancing the scale and breadth of offerings across the semiconductor value chain.
Highly complementary to Enpro's existing semiconductor businesses, providing meaningful customer and geographic expansion and high-growth, high-margin revenue streams; expected to be significantly accretive to adjusted diluted earnings per share. Combined business offers differentiated, integrated solutions with expanded customer relationships and a diversified geographic reach across the semiconductor value chain. Advanced Surface Technologies (AST) segment Eric Vaillancourt, Interim CEO, Q4 2021 earnings call: "I am particularly excited about the opportunities arising from our acquisition of NxEdge, as we are already realizing the significant benefits of combining the commercial and technological advantages across our Advanced Surface Technologies platform. Our teams are coordinating closely, and the combination is demonstrating solid strategic and cultural fit."
This combination with NxEdge is an important step forward in our portfolio reshaping strategy as we continue our transformation toward unique industrial technology products and services in high-margin, high-growth markets.Eric Vaillancourt, Interim President and Chief Executive Officer, EnPro Industries
We are thrilled with the opportunity to join Enpro and bring together our highly complementary assets to unlock significant value.Jackson Chao, Founder and Chief Executive Officer, NxEdge
Advisory firms were not disclosed for this transaction.