Oshkosh To Acquire AeroTech for Approximately $800 Million; We Increase Our Fair Value 9% to $99

On May 30, Oshkosh announced its acquisition of AeroTech from John Bean Technologies for approximately $800 million. Management expects to close the deal in third-quarter 2023. Overall, we think the deal will be accretive to Oshkosh's earnings, leading us to increase our fair value estimate to $99 from $91. In our view, Oshkosh paid a fair price for a business well positioned to benefit from growing air passenger traffic and U.S. infrastructure spending focused on airport revitalization. The deal multiple came out to 7.2 times EV/forward EBITDA, including run-rate synergies and expected tax benefits.