PX3 Partners' Cleanova to Transform Industrial Filtration with Micronics Acquisition

PX3 Partners Seizes Opportunity in Industrial Filtration

In a significant move within the industrial sector, PX3 Partners has announced that its portfolio company, Cleanova, is set to acquire Micronics Engineered Filtration Group. This merger will create a formidable global force in the industrial filtration market, with a combined enterprise value of approximately $1.3 billion. The completion of the transaction is anticipated in the second quarter of 2025.

Headquartered in Killarney, Ireland, Cleanova is recognized for its advanced clean-tech solutions, offering essential and engineered filtration systems designed to enhance the reliability of industrial processes while also protecting the environment. The company serves a diverse range of industries worldwide, tapping into a robust market that is characterized by a large and growing demand for quality filtration solutions.

On the other hand, Micronics, based in Chattanooga, Tennessee, specializes in the manufacturing of filter media and industrial filtration systems and provides an extensive array of field services tailored to meet stringent industrial requirements. Their innovative solutions not only uphold operational reliability but also contribute significantly to environmental sustainability.

The anticipated merger between Cleanova and Micronics is strategically complementary. Cleanova's stronghold in the European, Middle Eastern, and African (EMEA) markets is poised to synergize with Micronics' established presence across North America, thereby enhancing their combined global footprint. Furthermore, Cleanova's expertise in liquid filtration solutions will expand through Micronics' offerings in upstream pressure, vacuum filtration, and air filtration systems.

The rebranding of the merged entity to Cleanova, accompanied by a relocation of its headquarters to Chattanooga, reflects the ambition to unify both companies' strengths under one banner. This strategy aims to cover a comprehensive range of applications and markets, allowing the newly formed Cleanova to innovate and diversify its offerings more significantly than either could achieve alone.

The merger aligns with PX3's commitment to transformative growth strategies. By focusing on engineering high-quality filtration solutions tailored to customer needs while addressing global environmental challenges, Cleanova cuts across two of PX3's key investment themes: 'Compete Smarter' and 'Planet First'. They are also positioned within the growing branded light manufacturing sector, which is a noted area of emphasis for PX3.

Chris Cummins, who is set to transition from CEO of Micronics to the CEO of the combined Cleanova, stated, "This partnership marks a pivotal moment for our business, as it positions us for accelerated growth and innovation on a global scale." He further emphasized the merger's promise to expand their market reach and diversify the company's offerings while staying dedicated to providing exceptional service to customers.

Javaid Riaz, the current CEO of Cleanova and a member of its Board of Directors, added, "Our partnership with Micronics signifies a significant leap in Cleanova's growth trajectory. The complementary nature of our businesses positions us well to emerge as a prominent player in the global filtration industry."

The financial advisory aspects of this merger are being handled by BofA Securities and Santander, with Weil, Gotshal & Manges providing legal advice. Multiple partners, including Jefferies and Goldman Sachs, are poised to offer necessary debt financing, highlighting the financial community's confidence in this merger's future potential.

As PX3 continues to fortify its presence in the industrial sector, the acquisition signifies more than just financial growth; it embodies a vision to lead in sustainable industrial solutions. Through this strategic acquisition, Cleanova is not only enhancing its operational capabilities but also reinforcing its commitment to environmental sustainability in an era where clean technologies are increasingly pivotal.

Thus, this landmark acquisition marks a transformative phase in the industrial filtration arena, and the eyes of the industry will certainly be on Cleanova as it embarks on this promising new chapter, leveraging its enhanced position to foster growth and innovation worldwide.