SWORDS, Ireland– Trane Technologies (NYSE: TT), a global climate innovator, announced that it has signed an agreement to acquire Farrar Scientific, a leader in ultra-low temperature control for biopharmaceutical and other life science applications.
Farrar Scientific’s proprietary technology fills an unmet need for flexible, modular, and efficient ultra-low temperature process and storage, including cooling and heating/thawing. The solutions can provide an alternative to large-scale freezer farms or capital-intensive cold rooms used in manufacturing of drugs, vaccines and other biological products.
“Farrar Scientific has revolutionized ultra-low temperature control for biopharmaceutical companies and become a critical supplier to large pharma customers,” said Dave Regnery, CEO of Trane Technologies. “It brings technologies that meet critical needs in the addressable healthcare manufacturing and bioprocessing market, which is expected to grow to $1.65 billion by 2023.
“Leveraging our expertise in sustainable climate controls, our global footprint, and best-in-class business operating system, Trane Technologies will profitably grow and scale the pioneering solutions from this early-stage company. We also look forward to expanding our role in helping to provide vaccines, medicines and other healthcare products that are important to quality of life around the world.”
Trane Technologies will acquire 100% of Farrar Scientific’s assets, including its patented ultra-low temperature control technologies, a development and assembly operation in Marietta, Ohio, and a specialized team of engineers, sales engineers, operators, and technicians.
Holly Paeper, current vice president of Strategic Sales, Commercial HVAC Americas, has been appointed president of the new business, Trane Technologies Life Science Solutions, which will operate as part of the company’s Commercial HVAC Americas business unit.
Paeper is consistently recognized for her ability to nurture innovation and big ideas, build and scale high-growth businesses and cultivate high-performance teams. Paeper’s prior roles include vice president of marketing and general manager of data centers for Trane; and executive leadership roles in product management, marketing, sales, strategy and M&A for Corning, Eaton Corporation and Intel Corporation.
Farrar Scientific personnel will join the Trane Technologies’ Life Science Solutions team. This includes Scott Farrar, founder and chief technology officer of Farrar Scientific, who will serve as vice president of technology and innovation. Jim Vuksic, Farrar Scientific’s president and CEO, will serve as an advisor to the team.
The upfront transaction value is $250 million, with a total transaction value of up to $365 million inclusive of $115 million in additional payout potential in 2025 tied to the attainment of key financial targets. The acquisition will be funded with available cash on hand, and is expected to be modestly accretive to EPS in the first three years. Additional details of the transaction were not disclosed and are not material. The transaction is expected to close in the fourth quarter of 2021, subject to regulatory approval and customary closing conditions.
