Donaldson Co. will continue its growth in South America with its acquisition of Industrias Partmo S.A., a Colombian manufacturer with $15 million in annual revenue.
The pending purchase, for which terms were not disclosed, marks Donaldson's second small acquisition this month.
Partmo's factory will be Donaldson's first South American production site for engine liquid filters used in buses and trucks, Chief Executive Tod Carpenter said.
The 52-year old Industrias Partmo, a leading maker of replacement air, lube and fuel filters, employs 250 workers at its main factory in Bucaramanga, northeast of Bogota.
Donaldson Latin America Vice President Guillermo Briseño said that the acquisition will support Donaldson's strategy in South America. The company has a fast-growing footprint in the region, which includes recently expanded or new distribution centers in Peru, Chile, Brazil and Mexico.
Partmo makes a well recognized brand of replacement filters sold in Colombia and northern South America.
"We look forward to continuing and strengthening the long-term relationships they have built with their distributors and customers," Briseño said.
A Donaldson spokesman said the Partmo deal is expected to close between November and January, provided the necessary regulatory approvals are received as expected.
Donaldson's stock rose 32 cents a share to $34.24 in early trading Tuesday.
Two weeks ago Donaldson announced that it had acquired a majority stake in a small Missouri company that makes pleated dust-collection bags for grain, metal and mining factories.
The purchase of IFIL USA LLC will add about $6 million to $8 million in annual revenue to Donaldson's $2.4 billion. Terms for that deal also were not disclosed.
The small purchases are a positive move for Donaldson, which has struggled or late with downturns in both the agricultural equipment and mining-truck equipment industries.
Truck and factory filtration products continue to grow, which is where Donaldson has positioned its purchasing efforts of late.