EnPro pays down revolver using proceeds from $450 million divestiture

By Devika Patel

Knoxville, Tenn., Feb. 25 – EnPro Industries Inc. sold its Fairbanks Morse division to an affiliate of funds managed by private equity firm Arcline Investment Management for $450 million and used a portion of the proceeds from the sale to pay down its revolving credit facility.

“In the fourth quarter, we made our most significant move of the year by signing an agreement to sell Fairbanks Morse,” president and chief executive officer Marvin Riley said on the company’s fourth quarter and year ended Dec. 31, 2019 earnings conference call on Tuesday.

“The transaction closed on Jan. 21, 2020,” Riley said.

Adjusted EBITDA was $43.3 million for the quarter and $169.4 million for the year.

Cash and cash equivalents were $121.2 million as of Dec. 31, 2019, compared to $129.6 million as of Dec. 31, 2018.

Long-term debt was $625.2 million as of Dec. 31, 2019, compared to $462.5 million as of Dec. 31, 2018. The company’s pro forma net debt to adjusted EBITDA ratio was about 0.8x after the sale of Fairbanks Morse.

EnPro is a Charlotte, N.C.-based manufacturer of highly engineered industrial products.

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