Kadant Completes Acquisition of Syntron Material Handling
January 02 2019 - 4:35PM
Kadant Inc. (NYSE: KAI) today announced the completion of its
acquisition of Syntron Material Handling Group, LLC and certain of
its affiliates (“Syntron”), a leading provider of material handling
equipment and systems to various process industries, from entities
affiliated with Levine Leichtman Capital Partners for approximately
$179 million, subject to certain customary adjustments. The
transaction was financed through borrowings under the Company’s
revolving credit facility.
“We are excited to welcome Syntron to the Kadant family and look
forward to the new opportunities this combination will bring to our
business,” said Jonathan Painter, president and chief executive
officer of Kadant. “Syntron not only extends our breadth of premier
offerings to process industries, but also gives us access to new
industries that offer potential avenues for growth.”
Syntron is based in Tupelo, Mississippi with approximately 250
employees worldwide and revenue of approximately $89 million for
the trailing twelve months ended October 31, 2018.
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 2,750 employees in 20 countries
worldwide. For more information, visit www.kadant.com.
About Levine Leichtman Capital PartnersLLCP is
a Los Angeles, California-based private investment firm that has
managed approximately $10 billion of institutional capital since
its inception. LLCP invests in middle market companies located in
the United States and Europe. LLCP is currently making new
investments through Levine Leichtman Capital Partners VI, L.P.;
LLCP Lower Middle Market Fund, L.P.; Levine Leichtman Capital
Partners Europe, L.P.; and Levine Leichtman Strategic Capital, LLC.
LLCP has offices in Los Angeles, New York, Dallas, Chicago,
Charlotte, London, Stockholm, and The Hague.
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 Syntron, the benefits of the acquisition
of Syntron (the “Acquisition”), and the expected future business
and financial performance of Syntron and Kadant. These
forward-looking statements represent Kadant’s expectations as of
the date of this press release. Kadant undertakes 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 the Company’s 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 year ended December 30, 2017 and subsequent filings with the
Securities and Exchange Commission. These include risks and
uncertainties relating to Kadant’s ability to successfully
integrate Syntron and its operations and employees and realize
anticipated benefits from the transaction; unanticipated
disruptions to the business, general and regional economic
conditions, and the future performance of Syntron; potential
adverse reactions or changes to business or employee relationships,
including those resulting from the completion of the Acquisition;
competitive, investor or customer responses to the Acquisition;
uncertainty of the expected financial performance of the combined
operations; the ability to realize anticipated synergies, including
accessing new industries, and cost savings; unexpected costs,
charges or expenses resulting from the Acquisition; 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;
Kadant’s customers’ ability to obtain financing for capital
equipment projects; changes in government regulations and policies;
the 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; Kadant’s
acquisition strategy; Kadant’s internal growth strategy;
competition; soundness of suppliers and customers; Kadant’s
effective tax rate; future restructurings; soundness of financial
institutions; Kadant’s debt obligations; restrictions in Kadant’s
credit agreement; loss of key personnel; reliance on third-party
research; protection of patents and proprietary rights; failure of
Kadant’s information systems or breaches of data security;
fluctuations in Kadant’s share price; and anti-takeover
provisions.
ContactsInvestor Contact Information:Michael
McKenney, 978-776-2000mike.mckenney@kadant.comorMedia Contact
Information:Wes Martz, 269-278-1715wes.martz@kadant.com
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