The deal is expected to generate over $7 billion for future deals.
Roper Technologies Inc. recently agreed to sell a majority stake in its industrial businesses for roughly $2.6 billion in pre-tax cash proceeds.
The sale includes businesses within Lakewood Ranch-based Roper’s process technologies, as well as measurement and analytical solutions segments. New York-based private equity firm Clayton, Dubilier and Rice LLC was the buyer.
“This is the final step in Roper’s divestiture strategy to reduce the cyclicality and asset intensity of our enterprise,” Neil Hunn, Roper Technologies’ president and CEO, says in a release. “We have created a meaningfully enhanced and higher-quality go-forward portfolio of market-leading businesses that is better positioned to deliver higher and more resilient organic growth, an improved working capital profile and strong cash conversion.”
The sale includes Alpha, AMOT, CCC, Cornell, Dynisco, FTI, Hansen, Hardy, Logitech, Metrix, PAC, Roper Pump, Struers, Technolog, Uson and Viatran. These companies generated about $940 million in revenue last year, according to a statement.
“Selling a majority interest in these industrial businesses will provide Roper with significant upfront cash while maintaining the ability to receive additional cash proceeds from the future exit of our minority interest,” Hunn says in the statement.
Roper Technologies has been on a spree of divesting companies of late, with the previous transaction in October of TransCore. Singapore Technologies Engineering Ltd. took over ownership from Roper for $2.68 billion in cash. Roper Technologies also divested its Zetec and CIVCO Radiotherapy businesses in the third quarter of 2021. The company had $5.78 billion in revenue last year.