Beyond the Filter: Atmus's $450M Deal to Reshape the Air Quality Market

NASHVILLE, TN – November 24, 2025 – In a move that signals a significant strategic shift within the industrial technology sector, Atmus Filtration Technologies announced today it will acquire Koch Filter Corporation for $450 million in cash. While the press release from seller Truelink Capital frames the deal as a successful private equity exit, a deeper analysis reveals a multi-layered story about market diversification, portfolio strategy, and the rapidly growing value of clean air.

This transaction is far more than a simple exchange of assets. It represents a calculated gambit by Atmus to pivot beyond its legacy markets, a masterstroke of value creation by Truelink Capital, and a pivotal new chapter for Koch Filter, a nearly 60-year-old manufacturing stalwart. As the deal heads toward its expected close in early 2026, it offers a compelling look into the forces shaping the future of industrial manufacturing and environmental health.

Atmus's Gambit for a Diversified Future

For Atmus Filtration Technologies, a global leader historically rooted in vehicle and equipment markets, the acquisition of Koch Filter is a bold declaration of intent. With approximately 88% of its current revenue derived from the transportation sector, the company has been vocal about its M&A strategy to pursue inorganic growth in high-potential industrial segments. The Koch Filter deal is the first major execution of this strategy, providing an immediate and substantial foothold in the industrial air filtration market.

The strategic rationale is clear: diversification and expansion into burgeoning end-markets. Koch Filter is a leading independent platform serving commercial and industrial HVAC, with a strong presence in sectors like data centers and power generation—areas where air quality is not just a comfort but a mission-critical operational necessity. By integrating Koch, Atmus aims to boost its industrial air filtration business to represent roughly 8% of its total revenue, a significant jump that reduces its dependency on the cyclical automotive and heavy machinery industries.

Financially, the move is structured to deliver immediate value. Atmus projects the acquisition will be accretive to its Adjusted EPS and EBITDA margin within the first year. The $450 million price tag, which represents a 13.9x multiple of Koch's 2025 adjusted EBITDA, may seem steep. However, when factoring in expected tax benefits and cost synergies, the multiple drops to a more palatable 10.9x. This suggests Atmus sees clear pathways to optimizing operations and unlocking efficiencies, aiming for a high-single-digit return on invested capital by 2028. This confidence is bolstered by Atmus's strong balance sheet, which features low leverage and ample liquidity to absorb the purchase without undue financial strain.

“This transaction is a significant milestone for both Koch Filter and ADTi,” said Todd Golditch, Co-Founder and Managing Partner of Truelink, in the official announcement. His statement underscores the strategic fit, positioning the deal as one that enables “Koch Filter to thrive with Atmus.” For Atmus, thriving means combining its global scale and advanced media design capabilities with Koch’s deep customer relationships and end-to-end product portfolio, creating a formidable competitor in the clean air space.

The Private Equity Playbook in Action

On the other side of the transaction is Truelink Capital, a private equity firm whose brief but impactful ownership of Koch Filter exemplifies a classic value-creation strategy. Truelink acquired Koch Filter as part of its larger purchase of Air Distribution Technologies (ADTi) from Johnson Controls International in 2024. This initial move was a corporate carve-out, a complex maneuver where a firm acquires a non-core division of a larger conglomerate with the intent to unlock its standalone value.

Just over a year later, Truelink has orchestrated a highly successful partial exit. The $450 million sale not only provides a significant return on its initial investment but also strategically refines the ADTi portfolio. The divestiture sharpens ADTi’s focus on its core business, which CEO Doug Schuster identifies as three key units: Air Control Solutions, Air Movement Solutions, and Air Distribution Solutions.

“This transaction marks an exciting new chapter for ADTi as well,” Schuster stated, emphasizing a renewed focus on driving efficiencies and growth, both organically and through future M&A. By shedding the filtration business, ADTi can now concentrate its capital and operational resources on its engineered air distribution products, a segment with its own distinct market dynamics and growth opportunities. This move is a testament to Truelink's operationally focused strategy: identify undervalued assets, streamline operations, and execute strategic divestitures that maximize value for both the fund and the portfolio company.

A New Era for an Industry Veteran

Caught between these two strategic giants is Koch Filter itself, a company founded in 1966 that has quietly built a reputation as a world-class manufacturer of air filtration products. With four manufacturing plants strategically located across the United States, it has become one of the only nationwide independent platforms in its space, generating $156 million in revenue in its most recent fiscal year.

For Koch Filter’s employees and customers, the acquisition signals a transition from a private equity-owned entity to a division of a large, publicly traded industrial leader. This change brings both immense opportunity and the inherent challenges of integration. Mark Mattingly, CEO of Koch Filter, expressed optimism, stating, “Given all the recent investments we have made in our business, we are well positioned to accelerate our growth... Joining Atmus will mark an exciting new chapter for our business, our employees, and our customers.”

The promise is that Atmus’s global reach, R&D budget, and commitment to innovation will provide Koch with the resources to expand its market leadership. Access to Atmus’s advanced filtration media technology could fuel the next generation of Koch products, while Atmus’s international presence offers pathways into new geographic markets. The challenge, as with any acquisition, will be to preserve the institutional knowledge, operational agility, and customer-centric culture that made Koch an attractive target in the first place, all while integrating it into a much larger corporate structure.

This deal is more than a line item on a balance sheet; it is a reflection of the escalating importance of indoor air quality in a post-pandemic world. The premium valuation assigned to Koch Filter underscores the market's recognition that clean air is no longer a luxury but an essential component of modern infrastructure, from hospitals and commercial offices to the data centers powering our digital economy. As Atmus integrates its new asset, the industry will be watching closely to see how this combination of scale and specialization reshapes the competitive landscape for years to come.