Howden, a leading global provider of mission critical air and gas handling products, technologies and services, has completed its acquisition of Compressor Products International (“CPI”), a leading provider of aftermarket components and services to the global reciprocating compressor market.
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Headquartered in Houston, Texas, USA, CPI manufactures precision-engineered, custom aftermarket products which are vital to the longevity, efficiency and safety of reciprocating compressors.
This marks Howden’s sixth acquisition of 2021 and is well aligned with Howden’s strategy of expanding its global aftermarket presence in the compressor market. By leveraging CPI’s strategically located service centres, Howden will expand its aftermarket services and coverage across North America and Europe. CPI’s valves and aftermarket products are complementary and strategically important additions to Howden’s existing aftermarket compressor technology portfolio. As a result of this acquisition, Howden’s addressable markets will increase by $1 billion.
As part of Howden, CPI will be able to access growth opportunities through additional technology support from Howden and by leveraging Howden’s existing global distribution and services network in China, Asia Pacific and South Africa. With CPI’s predominantly aftermarket revenues, this acquisition will be accretive to both Howden’s aftermarket mix and overall margins.
This acquisition also reinforces Howden’s role in supporting the ongoing energy transition towards renewable sources of energy. Howden will leverage CPI’s reciprocating compressor technology to support customers through their energy transition.
Ross B. Shuster, CEO of Howden, commented: “Reciprocating compression technology is critical to the energy transition, with applications in hydrogen production and infrastructure, as well as biofuel production. CPI’s technology, expertise and aftermarket presence will allow us to serve customers looking to improve the performance and extend the life of their vital compressor assets across a wide range of industries. The acquisition of CPI will bring benefits to customers of both Howden and CPI. We’re proud to welcome the CPI team and the CPI brand into Howden.”