AMETEK Bets $5 Billion on Indicor Deal to Boost Industrial Tech Portfolio

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Sat, May 9, 2026 astatine 3:04 PM CDT 6 min read

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AMETEK agreed to bargain Indicor’s Instrumentation businesses successful a $5 cardinal currency deal, which absorption says is simply a highly strategical summation to its concern exertion portfolio. The transaction is expected to adjacent successful the 2nd fractional of the year, pending regulatory approvals.
The acquired portfolio generates astir $1.1 cardinal successful yearly sales and astir 50% recurring revenue from aftermarket income and services, with maturation historically successful the 6% to 7% range. AMETEK said the businesses acceptable good wrong its Electronic Instruments and Electromechanical segments.
AMETEK expects astir 10% to 12% of sales successful annualized outgo synergies, aiming to execute that by twelvemonth three. Management besides said the woody should beryllium accretive to currency net successful twelvemonth one and that leverage should beryllium manageable arsenic the institution plans to delever rapidly aft closing.

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AMETEK (NYSE:AME) said it has entered into a definitive statement to get the Instrumentation radical of businesses from Indicor, LLC, successful a $5 cardinal currency transaction that absorption described arsenic a highly strategical summation to its portfolio of niche concern exertion businesses.

Chairman and Chief Executive Officer David Zapico said connected a league telephone that the businesses being acquired make astir $1.1 cardinal successful yearly income and bring “highly differentiated mission-critical solutions” crossed a scope of niche markets. AMETEK referred to the acquired portfolio arsenic Indicor passim the call.

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“This is simply a highly strategical acquisition and is simply a effect of AMETEK’s disciplined attack to superior deployment,” Zapico said, calling it “a compelling and unsocial accidental to get a portfolio of outstanding concern exertion businesses successful 1 transaction.”

Deal Terms and Financing

AMETEK said the full currency information of $5 cardinal represents an approximate 14 times aggregate of EBITDA. Zapico said the institution expects to money the woody done a operation of borrowings nether AMETEK’s recognition installation and caller indebtedness issuance.

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At closing, AMETEK expects its debt-to-EBITDA ratio to beryllium astir 2.3 times. Executive Vice President and Chief Financial Officer Dalip Puri said the institution expects to delever quickly, astatine a gait of astir 0.2 to 0.3 of a crook each quarter, portion maintaining capableness for further acquisitions.

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