Thermon Group Holdings (NYSE: THR) reported Q1 EPS of $0.18, $0.06 worse than the analyst estimate of $0.24. Revenue for the quarter came in at $65.2 million versus the consensus estimate of $68.91 million.

Thermon also announced that a wholly-owned, indirect subsidiary of Thermon has acquired 100% of the equity interests of Industrial Process Insulators, Inc. ("IPI"), effective July 31, 2015 (the "Transaction").

IPI is an insulation contractor serving the refining, petrochemical, power and energy, marine, and pulp and paper industries in the United States, with a significant presence in the Texas and Louisiana Gulf Coast region. For the unaudited twelve month period ended June 30, 2015 ("TTM"), IPI generated revenue of approximately $22 million. The IPI management team, led by Darrell Kunk and Brian Kunk, will continue to operate the business following the closing of the Transaction.

The consideration paid in the Transaction was $21.75 million in cash at closing, subject to customary working capital adjustments, which was funded using a combination of cash on hand and borrowing under the Company's revolving credit facility. The purchase price implies a multiple of approximately 6x IPI's unaudited TTM EBITDA (as adjusted to exclude certain compensation paid to the former equity owners of IPI that is not expected to recur).

"For over 15 years, IPI has been delivering high quality, responsive and, most importantly, safe, thermal insulation solutions to its industrial customers in the Gulf Coast region, including as a subcontractor of Thermon. We believe that IPI is an ideal complement to Thermon's existing installation services offering, and will enhance our ability to execute "turnkey" heat tracing solutions. We expect the acquisition of IPI to enhance our ability to sell our core heat tracing products and grow our installed base. The acquisition is consistent with our strategy of pursuing organic and inorganic growth opportunities within and adjacent to our core thermal solutions business. We have known and worked with Darrell and Brian Kunk since the early 1990s and are pleased that they have agreed to multi-year employment agreements with Thermon. We look forward to welcoming IPI employees into the Thermon family," said Rodney Bingham, President and Chief Executive Officer of Thermon.

"We have a great deal of respect for the Thermon organization given the long track record of involvement between our two companies. We are excited to be partnering with Thermon and look forward to continued success," said Darrell Kunk, Chief Executive Officer of IPI.

For earnings history and earnings-related data on Thermon Group Holdings (THR) click here.