ITT acquires Habonim, a leading supplier of industrial valves and actuators, with annual sales of $44 million in 2021

WHITE PLAINS, NY–(BUSINESS WIRE)–April 4, 2022–ITT Inc. (NYSE: ITT) today announced the acquisition of a privately held Habonim for $140 million in an all-cash transaction. Habonim will be part of ITT’s Industrial Process (IP) segment. The acquisition was completed in the second quarter of 2022 and is expected to be accretive to ITT’s consolidated EBITDA margin.

Based in Kfar HaNassi, Israel, Habonim is a leading designer and manufacturer of valves, automation and valve actuation for the gas distribution (including LNG), biotech and fuel industries. difficult applications. The company’s highly differentiated business model allows the majority of its products to be marketed through distribution while maintaining its relationships with end users. Habonim also sells directly to OEMs and integrators for custom solutions. The company is present in Israel, the United States and the Netherlands and employs more than 200 highly qualified professionals worldwide.

“Habonim is a great addition to ITT’s portfolio,” said Luca Savi, CEO and President of ITT. “The company’s complementary ball valve offering and focus on challenging applications in attractive end markets will drive stronger sales growth for Industrial Process and ITT over the long term. Like ITT, Habonim has developed strong and lasting relationships with its customers and end users based on consistent quality and their ability to deliver highly technical solutions. The acquisition provides ITT with access to attractive new niche markets, expands IP’s existing specialty valve portfolio, including through its cryogenic and hydrogen ball valve offerings for green energy applications, and relies on an already solid distribution network in North America.

“Joining ITT is a very important and exciting step for Habonim on the path to growing and expanding our global leadership in the high performance valve and automated valve markets,” said Ilan Gilboa, CEO of Habonim. “The global reach, industry process domain expertise and shared, highly technical approach to solving problems and creating value for our customers will allow us to move much faster and with greater impact in the ITT framework. We are excited to start the next chapter at Habonim.

About ITT

ITT is a leading diversified manufacturer of mission-critical, engineered components and custom technology solutions for the transportation, industrial and energy markets. Building on its heritage of innovation, ITT partners with its customers to provide sustainable solutions to the key industries that underpin our modern way of life. ITT is headquartered in White Plains, NY, with employees in more than 35 countries and sales in approximately 125 countries. For more information, visit www.itt.com.

Safe Harbor Statement

This release contains “forward-looking statements” intended to qualify for the safe harbor rule established by the Private Securities Litigation Reform Act of 1995. In addition, officers and representatives of ITT may from time to time make and discuss projections, assumptions and statements that may constitute “forward-looking statements”. These forward-looking statements are not historical facts, but rather represent beliefs about future events based on current expectations, estimates, assumptions and projections about our business, future financial results and the industry in which we operate, and other legal, regulatory, and economic developments. These forward-looking statements include, but are not limited to, future strategic plans and other statements describing the company’s business strategy, outlook, objectives, plans, intentions or goals, and any discussion of future events and future operational or financial performance.

We use words such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “plan”, “believe”, “target”, “future”, ” may”, “will”, “could”, “should”, “potential”, “continue”, “direction” and similar expressions to identify these forward-looking statements. Forward-looking statements are uncertain and, by their nature, many of them are inherently unpredictable and beyond ITT’s control, and involve known and unknown risks, uncertainties and other important factors that could cause that actual results differ materially from those expressed or implied by, or reasonably inferred from, such forward-looking statements.

Where in any forward-looking statement we express an expectation or belief about future results or events, such expectation or belief is based on our management’s current plans and expectations, expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that the expectation or belief will be realized or that the anticipated results will be achieved or accomplished.

Among the factors that could cause our results to differ materially from those indicated by the forward-looking statements are risks and uncertainties inherent in our business, including, without limitation:

  • impacts on our business due to the COVID-19 pandemic, including:

    • variant strains of the virus, as well as the timing, effectiveness and availability of vaccines or other medical remedies, as well as people’s susceptibility thereto;

    • disruptions to our operations and demand for our products, increased costs, supply chain disruption and other constraints in the availability of materials and other necessary services;

    • government-mandated site closures, employee illnesses, skilled labor shortages, the impact of potential travel restrictions, on-site stay restrictions and vaccination requirements on our business and workforce -work; and

    • customer and supplier bankruptcies, impacts on the global economy and financial markets, and liquidity problems in accessing capital markets;

  • uncertain global economic and capital market conditions, including those due to COVID-19, trade disputes between the United States and its trading partners, actions taken by the current U.S. administration, political and social unrest, as well as as the availability and price fluctuations of steel, oil, copper and other raw materials;

  • the volatility of raw material prices and the ability of our suppliers to meet quality and delivery requirements;

  • inability to effectively manage the distribution of products and services;

  • the inability to successfully compete and innovate in our markets;

  • failure to protect our intellectual property rights or violations of the intellectual property rights of others;

  • the extent to which there are quality issues with manufacturing processes or finished products;

  • the risk of cybersecurity breaches;

  • loss or decline in sales from our most important customers;

  • risks due to our operations and sales outside of the United States and in emerging markets;

  • fluctuations in currency exchange rates and the impact of such fluctuations on our hedging arrangements;

  • fluctuations in demand or levels of capital investment and maintenance expenditure by customers, particularly in the oil and gas, chemical and mining markets, or changes in our customers’ planned production schedules, particularly in the commercial aerospace market;

  • the risk of significant business interruptions, particularly at our manufacturing facilities;

  • the risk of liabilities related to past disposals and demergers;

  • failure of portfolio management strategies, including cost reduction initiatives, to meet expectations;

  • risks related to government contracts, including changes in government spending levels and regulatory and contractual requirements applicable to sales to the U.S. government, including the impact of COVID vaccine mandates on our ability to continue to participate in federal contracts ;

  • fluctuations in our effective tax rate, including as a result of potential US tax reform;

  • changes in environmental laws or regulations, the discovery of previously unknown or broader contamination, or the inability of a potentially responsible party to perform its duties;

  • failure to comply with US Foreign Corrupt Practices Act (or other applicable anti-corruption legislation), export controls and trade sanctions, including customs tariffs;

  • the risk of product liability claims and litigation; and

  • changes in laws relating to the use and transfer of personal and other information.

The forward-looking statements included in this release speak only as of the date hereof. We undertake no obligation (and expressly disclaim any obligation) to update any forward-looking statements, whether written or oral or as a result of new information, future events or otherwise.

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