Trane Technologies, a global climate innovator, has announced that it has signed an agreement to acquire Farrar Scientific, an internationally renowned company in ultra-low temperature control for biopharmaceutical and other life science applications.
Farrar Scientific’s proprietary technology fills an unmet need for flexible, modular and efficient ultra-low temperature process and storage, including cooling and heating/thawing. The solutions can provide an alternative to large-scale freezer farms or capital-intensive cold rooms, which are used in manufacturing of drugs, vaccines and other biological products.
ultra-low temperature control solutions
“Farrar Scientific has revolutionized ultra-low temperature control for biopharmaceutical companies and become a critical supplier to large pharmaceutical customers,” said Dave Regnery, the Chief Executive Officer (CEO) of Trane Technologies, adding “It brings technologies that meet critical needs in the addressable healthcare manufacturing and bioprocessing market, which is expected to grow to US$ 1.65 billion by 2023.”
Dave Regnery adds, “Leveraging our expertise in sustainable climate controls, our global footprint, and best-in-class business operating system, Trane Technologies will profitably grow and scale the pioneering solutions, from this early-stage company. We also look forward to expanding our role in helping to provide vaccines, medicines and other healthcare products that are important to quality of life around the world.”
Total acquisition of Farrar Scientific’s assets
Trane Technologies will acquire 100% of Farrar Scientific’s assets, including its patented ultra-low temperature control technologies, a development and assembly operation in Marietta, Ohio and a specialized team of engineers, sales engineers, operators and technicians.
Holly Paeper, the Vice President (VP) of Strategic Sales, Commercial HVAC Americas, at Trane Technologies, has been appointed as the President of the new business, Trane Technologies Life Science Solutions, which will operate as part of the company’s Commercial HVAC Americas business unit.
Nurturing innovation and big ideas
Holly Paeper is consistently recognized for her ability to nurture innovation and big ideas, build and scale high-growth businesses, and cultivate high-performance teams. Paeper’s prior roles, include serving as Vice President of Marketing and General Manager of Data Centers for Trane Technologies and Executive Leadership roles in Product Management, Marketing, Sales, Strategy and M&A for Corning Incorporated (Corning Inc.), Eaton Corporation and Intel Corporation.
Farrar Scientific personnel will join the Trane Technologies’ Life Science Solutions team. This includes Scott Farrar, Founder and Chief Technology Officer (CTO) of Farrar Scientific, who will serve as Vice President of Technology and Innovation. Jim Vuksic, Farrar Scientific’s President and Chief Executive Officer (CEO), will serve as an advisor to the team.
Cash funded transaction deal
The upfront transaction value is US $250 million, with a total transaction value of up to US $365 million, inclusive of US $115 million in additional payout potential, in 2025, tied to the attainment of key financial targets.
The acquisition will be funded with available cash on hand and is expected to be modestly accretive to EPS, in the first three years. Additional details of the transaction were not disclosed and are not material. The transaction is expected to close in the fourth quarter of 2021, subject to regulatory approval and customary closing conditions.
