Kadant Completes Acquisition of NII FPG Company’s Forest Products Business
July 05 2017 - 4:41PM
Business Wire
Kadant Inc. (NYSE: KAI) announced today the completion of its
acquisition of the forest products business of NII FPG Company, a
global leader in the design and manufacture of equipment used by
sawmills, veneer mills, and other manufacturers in the forest
products industry, for approximately $173 million, net of cash
acquired, subject to a post-closing adjustment. The transaction was
financed through borrowings under the Company’s revolving credit
facility. The business will be integrated into Kadant’s Wood
Processing Segment.
“We are pleased to complete this transaction and welcome our new
colleagues from NII FPG to the Kadant family,” said Jonathan
Painter, president and chief executive officer of Kadant. “With NII
FPG’s leading position in its markets and a strong parts and
consumables business, we are confident the company will be a solid
contributor toward achieving our strategic initiative of growing
our aftermarket business. NII FPG is an excellent strategic fit
with our wood processing product line and we look forward to the
value it will create for our customers and our shareholders.”
The forest products business of NII FPG Company has 275
employees worldwide and generated revenue of approximately $81
million for the twelve months ended December 31, 2016.
About KadantKadant Inc. is a global supplier of
high-value, critical components and engineered systems used in
process industries worldwide. The Company’s products, technologies,
and services play an integral role in enhancing process efficiency,
optimizing energy utilization, and maximizing productivity in
resource-intensive industries. Kadant is based in Westford,
Massachusetts, with approximately 2,300 employees in 20 countries
worldwide. For more information, visit www.kadant.com.
Safe Harbor StatementThe following constitutes a “Safe
Harbor” statement under the Private Securities Litigation Reform
Act of 1995: This press release contains forward-looking statements
that involve a number of risks and uncertainties, including
forward-looking statements about the financial and operating
performance of NII FPG Company, the benefits of the transaction,
and the expected future business and financial performance of the
acquired company. Important factors could cause actual results to
differ materially from those indicated by such statements,
including: our ability to successfully integrate the acquired
business and realize anticipated benefits from the transaction,
unanticipated disruptions to the business, general economic
conditions, and the future performance of the forest products
industry and other factors, including those set forth under the
heading "Risk Factors" in Kadant’s annual report on Form 10-K for
the year ended December 31, 2016 and subsequent filings with the
Securities and Exchange Commission. These include risks and
uncertainties relating to adverse changes in global and local
economic conditions; the variability and difficulty in accurately
predicting revenues from large capital equipment and systems
projects; the variability and uncertainties in sales of capital
equipment in China; currency fluctuations; our customers’ ability
to obtain financing for capital equipment projects; changes in
government regulations and policies; oriented strand board market
and levels of residential construction activity; development and
use of digital media; price increases or shortages of raw
materials; dependence on certain suppliers; international sales and
operations; economic conditions and regulatory changes caused by
the United Kingdom’s likely exit from the European Union;
disruption in production; our acquisition strategy; our internal
growth strategy; competition; soundness of suppliers and customers;
our effective tax rate; future restructurings; soundness of
financial institutions; our debt obligations; restrictions in our
credit agreement; loss of key personnel; reliance on third-party
research; protection of patents and proprietary rights; failure of
our information systems or breaches of data security; fluctuations
in our share price; and anti-takeover provisions. We undertake no
obligation to publicly update any forward-looking statement,
whether as a result of new information, future events, or
otherwise.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170705006039/en/
Kadant Inc.Investor Contact Information:Michael McKenney,
978-776-2000mike.mckenney@kadant.comorMedia Contact Information:Wes
Martz, 269-278-1715wes.martz@kadant.com
Kadant (NYSE:KAI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Kadant (NYSE:KAI)
Historical Stock Chart
From Sep 2023 to Sep 2024