Ingersoll Rand Inc.

we I think I think we're I think we're good I think we're ready to go all right all right our next uh fireside chat is is Ingersoll we're in we're really happy to have Vic Kinney chief financial officer here with us today uh Vic great to see you yeah thanks for having us so I don't know if you want to open up with any initial remarks if you want to get right into Q&A however you want to do this listen why don't we just jump right into it all right perfect why don't why don't we start um look the evolution of Ingersoll has been incredible um The amount of M&A you guys have done over the last four to five years has also been incredible. It's been an important part of the value creation framework going forward. We're still trying to get to know a little bit about this ILC Dover acquisition. So why don't we start there and tell us what the strategy is behind that acquisition, ultimately what that means for your broader medical portfolio as you continue to scale the business.

Yeah, absolutely. So, yeah, so let me just start by saying, you know, first and foremost, really excited by kind of the momentum we've seen. We're coming up on close to five years now since the merger to creating or saw RAND. And, you know, one of the biggest opportunities that we saw when we put the companies together was a large fragmented kind of you know, end market base, the opportunity for acquisitions. And, you know, I think one of the big things, and we'll get to ILC Dover here, was that there were a lot of bolt-on, you know, M&A opportunities. And so to set the stage, here we are in, you know, December 2024. I think over the last four and a half plus years, we've done, you know, 55, 56, you know, acquisitions. I would say all largely bolt-on in nature, and maybe ILC Dover slightly larger than a bolt-on. I think in the context of ILC Dover, No surprise that life sciences has kind of been a focal point of the strategy. As you remember, post-merger, you know, we wanted to specifically distance ourselves from, I'd say, what we call more cyclical assets. So we did take the opportunity essentially one year. In the one year post the merger, we sold, you know, the legacy Gardner Denver oil and gas pump business. the club car business, both great businesses, but just didn't fit the mission-critical flow creation, less cyclical asset portfolio that we were looking for. And now, flash forward, life sciences already was our single largest end market total business, and we saw a big opportunity with ILC Dover to kind of, let's say, create a much more firmer beachhead, if you will, on the life sciences side, both to establish life sciences even more prominently, but then also to create a platform for further M&A. I think in terms of ILC Dover, simply stated here, great platform, really exposed a lot more on what we'll call the bioprocessing side, particularly with a distinct focus in areas like consumables. So their hallmark products are things in single-use powder containment, isolators, liquid handling type applications, consumables in the context of tubing, which for us is exactly where you want to play in this space. And I think there also are some nice parallels and synergies with the existing portfolio. And so we can obviously talk a little bit more about ILT Dover, but, you know, one of the areas that's really exciting for us is, for example, in the IR medical business, which we've had, you know, we had peristaltic pump technology. We never had the consumables like the tubing and whatnot. Well, ILT Dover, one of their core competencies is silicon and thermoplastic tubing and extrusion of that nature. So now we actually have the consumables to go with our peristaltic pump technology. Powder handling and a lot of the powder handling applications, you need to have air to convey the powder in the application set and well. Flowers and vacuums are piece and parcel to Ingersoll Rand. So I think we're seeing some nice synergies in terms of, you know, what we'll call commercial or cost and centers there. But I think I'll see Dover when you think about the biopharma and the medical device business, which are essentially the 2 biggest pieces there in terms of true life sciences. Really excited. They've had great growth trajectory, continue to perform well, and we're really excited about kind of the future opportunities there. Awesome.

Look, I remember years ago, it's probably, I mean, probably when you guys were Gardner Denver, talking about scaling this medical business to one day maybe be, you know, call it a $2 billion plus type revenue business. We're getting there. We're on our way. We're getting there. You talked about those opportunities within ILC Dover necessarily being a beachhead, right? So where does this open up additional M&A bolt-on opportunities to get us to potentially that $2 billion level?