Atmus Filtration Agrees To Acquire Koch Filter From Air Distribution Technologies For $450M In Cash

Establishes Industrial Air Filtration Platform and Provides Access to Established Customer Base Across Growing End-Markets, Including Commercial and Industrial HVAC, Data Centers and Power Generation

Atmus Filtration Technologies Inc. (("Atmus", NYSE:ATMU), a global leader in filtration and media solutions, today announced that it has entered into a definitive agreement to acquire Koch Filter Corporation ("Koch Filter"), a manufacturer of essential air filtration solutions for growing end-markets, including industrial and commercial HVAC, data centers and power generation, from Air Distribution Technologies, Inc. ("ADTI"), a portfolio company of Truelink Capital, for $450 million in cash, subject to customary adjustments. Koch Filter generated $156 million in revenue in the 2025 fiscal year ended September 30, 2025.

The transaction is expected to be accretive to Atmus' Adjusted EPS and Adjusted EBITDA margin in 2026 and achieve high-single-digit ROIC by 2028. The purchase price represents a 13.9x multiple based on Koch Filter's Adjusted EBITDA* for the 2025 fiscal year ended September 30, 2025. When adjusted for the present value of expected tax benefits, the net transaction value is approximately $395 million, a 10.9x multiple after adjusting for tax benefits and cost synergies.

The transaction is expected to be funded through a combination of cash on hand and borrowings under Atmus' credit facility, including through a potential upsize of that credit facility. It is expected to close in the first quarter of 2026, subject to the satisfaction or waiver of customary closing conditions.