The city’s oldest industry has been sold but according to the president of the union representing most workers, the sale seems to be positive for the plant.
General Electric which purchased Dresser-Roots several years ago has sold the company to Colfax Corp. of Annapolis Junction, Md.
The Baltimore Business Journal reports Colfax will pay $185 million for the Roots business unit from GE Oil & Gas and expects to finalize the all-cash acquisition in the third quarter. In 2014, the Roots division posted revenue of roughly $155 million and earnings before interest, taxes, depreciation and amortization of $22 million.
According to the Colfax website, the company was founded in 1995 by Steven and Mitchell Rales. The company has grown through a series of acquisitions which took Colfax into the fluid handling and mechanical power transmission sectors but in the early 2000s, the company turned its focus to fluid handling.
Roots had its beginnings as a woolen mill in Connersville in 1846. In 1854, the Roots brothers improved the water wheel on their woolen mill where Fire Station 1 is currently located and later developed the “Roots Principal” for moving air.
Roots will become part of Colfax’s Howden’s Division which has strength in compressors and blowers and Roots will add important application expertise and product solutions to the portfolio.
“We are excited by the opportunities created by combining the Roots capabilities and application expertise with Howden’s global footprint and continuous improvement culture,” said Colfax President and CEO Steve Simms. “Like Howden, the Roots business has spent more than 150 years developing market leading products and solutions, and we look forward to continuing to innovate and grow.”
He said the company will continue to strengthen itself by acquisitions.
“This transition marks another important step in the 165-year history of Roots blowers and compressor heritage,” said Tom Schwab, general manager of GE’s Industrial Air & Gas Technologies. “Moving forward with Howden will position us for even greater success as we continue to invest in products and technology and better serve our customers globally.”
When the company was contacted, a spokesman said there would be no further information coming but they are happy to have Roots in their company.
A local GE Roots spokesperson could not speak for the company.
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