Donaldson Co. announced plans to buy a majority stake in a company in the United Kingdom that makes fume extraction equipment for use in industrial manufacturing processes.
Bloomington-based Donaldson expects to pay about $103 million for an 88 percent interest in BOFA International Ltd. The company, based in Poole, England, makes fume extraction equipment and replacement filters that are used in laser, electronics, printing, 3-D printing and dental applications.
“BOFA’s fume collection business will be an excellent complement to our global portfolio of filtration businesses,” said Tod Carpenter, president and chief executive of Donaldson, in a statement. “The acquisition of BOFA aligns well with our strategy by growing our industrial air filtration business and diversifying our company through technology-led filtration solutions.”
BOFA has 250 employees and expects to have annual sales this year of $40 million. BOFA sells its fume extraction systems and replacement filters to original equipment manufacturers, distributors and end users.
The addition of BOFA will extend the capabilities within Donaldson’s industrial products segment, which accounted for about 32 percent of the company’s $2.7 million in revenue last year.
“We are excited to leverage BOFA’s high-quality products and strong customer relationships to expand into new industrial air filtration markets and applications,” said Jeff Spethmann, senior vice president of Donaldson’s Industrial Products segment.
The last acquisition Donaldson made was Hy-Pro, a company based in Anderson, Ind., in May 2017.
Shares of Donaldson were trading at $57.02 per share, down less than 1 percent in trading Tuesday morning. Year to date, Donaldson shares are up 17 percent.
Patrick Kennedy • 612-673-7926