This report does not constitute a rating action. CENTENNIAL (S&P Global Ratings) Sept. 6, 2022--S&P Global Ratings today said that Charlotte, N.C.-based engineered industrial products manufacturer EnPro Industries Inc.?s (BB/Stable/--) planned divestitures would improve 2022 credit metrics and provide debt capacity for acquisitions. We believe EnPro could pursue large targets--such as NxEdge, which it bought for $850 million in 2021--that earn high margins and focus on high growth end markets. However, we expect the company would finance a large acquisition such that S&P Global Ratings-adjusted debt to EBITDA remains below 4x, pro forma for 12 months of the target?s EBITDA. If EnPro completes no acquisitions in 2022, we forecast S&P Global Ratings-adjusted debt to EBITDA will decline to 2x-2.5x in
