Kadant Acquires Leading U.S. Baler Manufacturer
August 23 2021 - 4:53PM
Kadant Inc. (NYSE:KAI) today announced it has completed its
acquisition of Balemaster for $54 million in cash, subject to
certain customary adjustments.
Balemaster is a leading U.S. manufacturer of horizontal balers
and related equipment used primarily for recycling packaging waste
at corrugated box plants and large retail and distribution centers.
The company’s revenue for the trailing twelve months ended June 30,
2021 was approximately $22 million. Balemaster will become part of
Kadant’s Material Handling reporting segment.
“Our acquisition of Balemaster expands our presence in the
secondary material processing sector and creates new opportunities
for leveraging our high-performance balers produced in Europe,”
said Jeffrey L. Powell, president and chief executive officer of
Kadant Inc. “The company is a market leader in North America and
its strong aftermarket business fits well with Kadant. We are
excited to welcome the employees of Balemaster to the Kadant
family.”
“We are proud of the strong brand and market presence Balemaster
has built over the past 75 years,” said Cornel Raab, president of
Balemaster. “Kadant is a world-class company with a similar culture
and values as our family-built business, and we believe it is a
great home for our company and employees.”
Conference CallKadant will hold a conference
call and webcast on Tuesday, August 24, 2021 at 9:30 a.m. eastern
time to discuss the acquisition. To listen to the call and view the
webcast, go to the “Investors” section of the Company’s website at
www.kadant.com. To participate in the question and answer session,
dial 888-326-8410 within the U.S., or +1-704-385-4884 outside the
U.S., and reference participant passcode 2987001. A replay of the
webcast will be available on the Company’s website through
September 24, 2021.
About Kadant Kadant 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 2,900 employees in 21 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 Balemaster, the benefits of the
acquisition, and the expected future business and financial
performance of Balemaster. These forward-looking statements
represent our expectations as of the date of this press release. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events,
or otherwise. These forward-looking statements are subject to known
and unknown risks and uncertainties that may cause our actual
results to differ materially from these forward-looking statements
as a result of various important factors, including those set forth
under the heading "Risk Factors" in Kadant’s annual report on Form
10-K for the fiscal year ended January 2, 2021 and subsequent
filings with the Securities and Exchange Commission. These include
risks and uncertainties relating to Kadant's ability to
successfully integrate Balemaster and its operations and employees
and realize anticipated benefits from the acquisition;
unanticipated disruptions to the business, general and regional
economic conditions, and the future performance of Balemaster;
potential adverse reactions or changes to business or employee
relationships, including those resulting from the announcement of
the acquisition; competitive and/or investor responses to the
acquisition; uncertainty of the expected financial performance of
the combined operations; the ability to realize anticipated
synergies and cost savings; unexpected costs, charges or expenses
resulting from the acquisition; the impact of the COVID-19 pandemic
on our operating and financial results; adverse changes in global
and local economic conditions; the variability and difficulty in
accurately predicting revenues from large capital equipment and
systems projects; health epidemics; our acquisition strategy;
levels of residential construction activity; reductions by our wood
processing customers of their capital spending or production of
oriented strand board; changes to the global timber supply;
development and use of digital media; cyclical economic conditions
affecting the global mining industry; demand for coal, including
economic and environmental risks associated with coal; failure of
our information systems or breaches of data security and
cybertheft; implementation of our internal growth strategy; price
increases or shortages of raw materials; competition; changes in
our tax provision or exposure to additional tax liabilities; our
ability to successfully manage our manufacturing operations;
disruption in production; future restructurings; loss of key
personnel and effective succession planning; protection of
intellectual property; climate change; adequacy of our insurance
coverage; global operations; policies of the Chinese government;
the variability and uncertainties in sales of capital equipment in
China; currency fluctuations; economic conditions and regulatory
changes caused by the United Kingdom’s exit from the European
Union; changes to government regulations and policies around the
world; compliance with government regulations and policies and
compliance with laws; environmental laws and regulations;
environmental, health and safety laws and regulations impacting the
mining industry; our debt obligations; restrictions in our credit
agreement and note purchase agreement; substitution of an
alternative index for LIBOR; soundness of financial institutions;
fluctuations in our share price; and anti-takeover provisions.
ContactsInvestor Contact Information:Michael
McKenney, 978-776-2000IR@kadant.com orMedia Contact
Information:Wes Martz, 269-278-1715media@kadant.com
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