Atmus Filtration Technologies Acquires Koch Filter for $450M in Strategic Pivot to High-Purity Air

NASHVILLE, TN – November 24, 2025 – In a decisive move signaling a major strategic shift, Atmus Filtration Technologies (NYSE: ATMU) today announced a definitive agreement to acquire Koch Filter Corporation for $450 million in cash. The acquisition marks Atmus’s first major strategic action since becoming a fully independent public company and represents a significant pivot from its legacy in vehicle and heavy equipment filtration into the rapidly expanding industrial air filtration market, a sector critical to data centers, commercial buildings, and healthcare environments.

The deal positions Atmus, historically a leader in engine protection for trucks and off-highway machinery, to capture a substantial share of a market increasingly focused on air purity. Koch Filter, a U.S.-based manufacturer with a history dating back to 1966, brings a comprehensive portfolio of high-demand consumable products, including HVAC filters, high-efficiency particulate air (HEPA) filters, and specialty filtration systems. These components are essential for maintaining clean air in environments where airborne contaminants can disrupt operations or compromise safety, from massive data centers powering the cloud to sterile hospital operating rooms.

A Financially Sound Diversification

Atmus, which completed its full separation from engine giant Cummins in March 2024, is leveraging its strong financial position to fund the acquisition. The company plans to use a combination of cash on hand and borrowings under its credit facility. With a reported $218.3 million in cash and short-term investments and robust profitability—including a record $61.85 million in net profit in its most recent quarter—Atmus is well-capitalized to absorb the purchase.

The $450 million price tag values Koch Filter at a multiple of 13.9 times its fiscal 2025 adjusted EBITDA. However, Atmus projects that after accounting for expected tax benefits and cost synergies, the net transaction value is closer to $395 million, representing a more moderate 10.9x multiple. The company expects the acquisition to be accretive to its adjusted earnings per share (EPS) and adjusted EBITDA margin starting in 2026, with a projected high-single-digit return on invested capital (ROIC) by 2028.

“The acquisition of Koch Filter will accelerate Atmus’ growth by expanding into the industrial air filtration market, including the growing industrial and commercial HVAC, data center and power generation end-markets,” said Steph Disher, Chief Executive Officer of Atmus, in the official announcement. “Combining these strengths with our global footprint and expertise in media design positions our company to unlock growth opportunities.” The move is a clear diversification away from the risks associated with the long-term transition to electric vehicles, which require far less filtration than their internal combustion engine counterparts, and a step towards more resilient, high-growth sectors.

Tapping into the Clean Air Economy

The strategic rationale for the acquisition is anchored in powerful secular growth trends. The global industrial air filtration market is on a steady upward trajectory, projected to grow from around $6.5 billion today to over $10 billion by the early 2030s. This growth is fueled by two key drivers: the explosive expansion of digital infrastructure and a heightened global focus on indoor air quality (IAQ).

The data center market, in particular, has become a voracious consumer of advanced filtration. As cloud computing, artificial intelligence, and big data analytics demand ever-larger and more powerful server farms, maintaining pristine air quality has become mission-critical. Airborne dust and corrosive gases can wreak havoc on sensitive electronics, leading to costly downtime and equipment failure. Koch Filter’s expertise in providing reliable filtration for these environments gives Atmus an immediate and significant foothold in a sector projected to exceed $10 billion in filtration demand by 2032.

Beyond data centers, the acquisition taps into the heightened public and corporate consciousness around indoor air quality, a trend massively accelerated by the COVID-19 pandemic. Koch Filter’s portfolio of HVAC and HEPA filters are crucial components for improving air in commercial buildings, manufacturing facilities, and, critically, healthcare settings. HEPA filters are the gold standard for removing airborne pathogens, allergens, and pollutants, making them indispensable in hospitals, clinics, and life sciences cleanrooms where patient outcomes and research integrity depend on sterile conditions. By acquiring Koch, Atmus is not just buying a product line; it is buying access to the foundational technology of public health infrastructure.

A Defining Move for an Independent Atmus

For Atmus, this acquisition is more than a simple business transaction; it is a declaration of intent. Since its IPO in May 2023 and full independence in 2024, investors and market-watchers have been waiting to see how the company would define its own path, separate from its former parent, Cummins. This $450 million bet provides a clear answer.

Investor reaction has been positive, with ATMU shares gaining 1.63% on the day of the announcement, reflecting confidence in the strategic vision laid out by Disher and her leadership team. The move positions Atmus to compete more directly with established industrial filtration giants like Donaldson Company and Parker-Hannifin, who are also heavily invested in these high-growth markets.

The deal, which is expected to close in the first quarter of 2026, will integrate Koch Filter's established U.S. customer relationships and deep industry experience with Atmus's global scale and advanced media design capabilities. This synergy promises to create a formidable competitor in the industrial filtration space, capable of innovating and delivering the critical technologies needed to protect both multi-billion dollar digital assets and human health.