CHARLOTTE, N.C.–( EnPro Industries, Inc. (NYSE: NPO) today announced that it has completed the sale of GGB, its mission critical surface engineering solutions business, to The Timken Company for total proceeds of $305 million, subject to closing date purchase price adjustments. Enpro announced the agreement to sell GGB on September 6, 2022.
As previously announced, Enpro’s continuing operations consist of its Advanced Surface Technologies (“AST”) and Sealing Technologies segments, both of which are enduring, high-margin businesses with significant aftermarket exposure and recurring revenue streams. AST and Sealing Technologies are both leaders in attractive end-markets, such as semiconductor, photonics, food and pharma, nuclear energy, and aerospace.
“The sale of GGB marks a significant milestone in our transformation to create a streamlined organization focused on our AST and Sealing Technologies segments, positioning Enpro for compelling growth,” said Eric Vaillancourt, President and Chief Executive Officer. “The sale also provides us with enhanced financial flexibility to expand our leading-edge capabilities in attractive end markets. On behalf of my Enpro colleagues, I thank the GGB team for their contributions to our company and wish them continued success in their next chapter as part of Timken.”
As previously announced, Enpro also expects to complete the divestiture of its Garlock Pipeline Technologies (GPT) business later this month, at which point it will have completed the exit of its Engineered Materials segment. The Company intends to use the estimated $290 million of after-tax proceeds from the two divestitures for leverage reduction, while continuing to invest in organic growth opportunities and selectively pursuing strategic acquisitions over time.
