American equipment giant, Ingersoll Rand, is set to acquire the Israeli firm, Ecoplant, renowned for its technology aimed at reducing air pollution in factories. The transaction, speculated to be between $40-$50 million, showcases a 6-7 fold return on the $8.5 million raised by Ecoplant. The firm’s investor roster includes Ecolab, Techstars, BGV VC, the Century Club, and Kibbutz Gevim. Additionally, the company has received $3 million in grants from the Innovation Authority and the BIRD Foundation.
As a result of the acquisition, Ingersoll Rand plans to establish a center in Israel, employing up to 100 employees by the end of 2024. Ingersoll Rand, which is traded on the New York Stock Exchange (NYSE), is valued at around $24 billion and employs approximately 17,000 workers. The company sells its products under 40 different brands worldwide.
Founded in 2016 by CEO Aviran Yaakov and his father Moti Yaakov, along with a high-school friend, Yaron Harel, Ecoplant developed a unique platform to reduce wastage of compressed air used in factories. “Half of the compressed air is wasted due to inefficiency,” explains Aviran. The platform they created connects to any air compressor and industrial sensors, reads data, conducts analyses, and gives commands to the compressors. “It’s essentially the operating system of the compressors and allows for tens of percentage points savings in their operation,” Aviran elaborates.
Speaking about the acquisition, Aviran notes, “About a year ago, the buyer approached us and after discussions about cooperation, they offered to purchase us as their core technology.”