ITT Corporation

ITT Announces Agreement to Acquire Axtone

    11/4/2016

    Strategic acquisition will expand ITT’s portfolio with highly engineered and customized energy absorption components for railway and other harsh-environment industrial markets


    WHITE PLAINS, N.Y., Nov. 4, 2016 — ITT Inc. (NYSE: ITT) announced today that it has signed an agreement to acquire Axtone, a leading manufacturer of highly engineered and customized components for railway and other harsh-environment industrial markets.
    The acquisition will be highly complementary to ITT’s legacy KONI brand as Axtone produces energy absorption solutions such as springs, buffers and coupler components that are critical safety technologies.

    “Expanding our strong positions across the transportation industry – including railway, aerospace and automotive – is key to ITT’s strategy,” said ITT CEO and President Denise Ramos. “The addition of Axtone’s high-quality portfolio and leading technologies will serve to further position our growing Motion Technologies business as a global transportation leader with strong capabilities and reach to provide a premier experience to our customers.”

    Motion Technologies President Luca Savi said, “This agreement reflects our strategic commitment to enhancing our global leadership position in railway components. Axtone will complement our current portfolio, expand our global railway presence and grow our position in the profitable aftermarket. It will also provide another opportunity to deploy our Motion Technologies management system to create value through operational excellence. We look forward to the opportunity to bring together two outstanding teams with a shared commitment to innovation, quality and unrivaled performance.”

    The transaction represents a cash consideration of approximately $118 million that will be primarily funded from the company’s foreign cash (assumes $1.09 USD per €1 Euro). The final purchase price is subject to a customary net working capital adjustment. The transaction is expected to close in the first quarter of 2017, subject to customary closing conditions, including appropriate regulatory approvals. Axtone anticipates full-year 2016 revenues of approximately $80 million and adjusted EBITDA of approximately $14 million. The transaction is expected to be accretive to ITT earnings in the first full year after closing. Axtone is headquartered in KaƄczuga, Poland, and has approximately 660 employees and six manufacturing locations.

About ITT

ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the energy, transportation and industrial markets. Building on its heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin our modern way of life. Founded in 1920, ITT is headquartered in White Plains, N.Y., with employees in more than 35 countries and sales in a total of approximately 125 countries. The company generated 2015 revenues of $2.5 billion.

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