Howden buys Spencer Turbine, CPI
14 October 2021
Howden has gone on a shopping spree, recently making its fifth and sixth acquisition this year. Its latest acquisition, Compressor Products International, was from EnPro Industries (NYSE: NPO) and strengthens its foothold in the aftermarket components and services sector to the reciprocating compressor market, the company said.
“CPI’s technology, expertise and aftermarket presence is an excellent fit with Howden and will allow us to best serve customers looking to improve the performance and extended the life of their vital compressor assets from across a wide range of industries,” Howden said.
CPI, headquartered in Houston, Texas, USA, has a diverse, global blue-chip customer base with sales primarily in North America, Europe and Asia, Howden said. It is a manufacturer of precision-engineered, custom aftermarket products and its broad product offering is critical to the longevity, efficiency and safety of reciprocating compressors.
The acquisition of CPI is aligned with Howden’s strategy of expanding its global aftermarket presence in the compressor market. By using CPI’s strategically located service centers, Howden will expand its aftermarket services and coverage across North America and Europe, Howden said.
CPI’s valves and aftermarket products are complementary and strategically important additions to Howden’s existing aftermarket compressor technology portfolio. As a result of this acquisition, Howden’s addressable markets will increase by $1 billion, the company said.
As part of Howden, CPI will be able to access growth opportunities through additional technology support from Howden and by leveraging Howden’s existing global distribution and services network in China, Asia Pacific and South Africa. With CPI’s predominantly aftermarket revenues, this acquisition will be accretive to both Howden’s aftermarket mix and overall margins.
This acquisition also reinforces Howden’s role in supporting the ongoing energy transition towards renewable sources of energy. Reciprocating compression technology is critical to the energy transition, with applications in hydrogen production and infrastructure as well biofuel production. Howden will leverage CPI’s reciprocating compressor technology to support customers through the energy transition in these critical applications.
“CPI’s technology, expertise and aftermarket presence, is an excellent fit within Howden, and will allow us to best serve customers looking to improve the performance and extend the life of their vital compressor assets across a wide range of industries,” said Howden CEO Ross Shuster.
Less than two weeks earlier, Howden also announced it purchased Spencer Turbine from private equity firm Alliance Portfolio Holdings. Terms of the acquisition were not made public.
Spencer Turbine, based in Windsor, Connecticut, USA, is an independent manufacturer of equipment to handle air and gas, with sales primarily in the United States and China.
Its industrial blowers, vacuum systems and gas pressure boosters are designed to withstand extreme conditions and ensure long-term performance, Howden said.
This latest acquisition aligns with Howden’s strategy of expanding its already strong presence in global growth markets including wastewater treatment. The acquisition of Spencer Turbine adds complementary products to Howden’s existing portfolio that expand Howden’s addressable markets by over $1.2 billion, the company said.
As a result of the acquisition, Spencer Turbine will be able to tap into growth opportunities by using Howden’s existing global distribution and aftermarket service network, including its well-established presence in China, South America and Europe, Howden said.
“The acquisition of Spencer Turbine further expands our presence in growth markets, including the industrial and wastewater treatment sectors, and is well aligned with the elements of our strategic vision of “enabling our customers’ vital processes’ and ‘advancing a more sustainable world,” Shuster said.
“With strong complementary technologies, we are excited to be able to provide our customers with both diverse, high quality product and system solutions to address their specific air and gas handling application needs,” said Spencer Turbine President Tony Mancini.