CINCINNATI, March 4, 2013 /PRNewswire/ -- CECO
Environmental Corp. (NasdaqGM: CECE), a leader in air pollution
control technology systems, product recovery and filtration
technology, announced that it has acquired Aarding Thermal
Acoustics B.V. ("Aarding"), one of the world leaders in natural gas
turbine exhaust systems and silencer applications.
Headquartered in the
Netherlands with a significant global sales footprint,
Aarding is a technology leader within gas turbine downstream
engineered exhaust systems and silencing products focused on the
natural gas, power and petrochemical industries. Founded in
1960 with revenues of approximately $34
million in 2012, Aarding's superior brand, management team
and technology have resulted in a broad blue-chip customer base
located in countries throughout the world.
Aarding's principals, Martin
Pranger and Norbert Pieterse,
will continue in their roles as President and Vice President,
respectively, of Aarding. They will also lead CECO's
expanding global natural gas business including its Flextor Group
which provides complementary engineered solutions to those of
Aarding.
"We are extremely excited with the acquisition of Aarding. We
have been working successfully with Martin, Norbert and the Aarding
team of 50 people for over three years on a profitable, global
natural gas sales technology alliance that has provided us
significant insight into Aarding's premier brand and unique
capabilities," commented Jeff Lang,
CECO's Chief Executive Officer. "As our business
continues to expand globally within the natural gas sector, Aarding
and CECO will become one of the leading natural gas engineered
equipment providers in the world. Together with Aarding's
technology, engineering team and global management experience, CECO
can expect to gain an increasing share of this expanding
market."
Mr. Lang continued, "The entire CECO team looks forward to
Martin, Norbert and the rest of the Aarding family joining our
leadership group and working with us to continue to grow our
business, technology, global footprint and profitably. Aarding is
truly a global business with sales derived from all over the world
which greatly enhances our strategic direction."
Martin Pranger, President of
Aarding, commented, "Becoming part of CECO will enable Aarding to
greatly enhance our already strong products and geographic
reach. In particular, we look forward to providing our
customers with a greater breadth of system offerings for their
downstream natural gas requirements and continuing to grow our
revenues and presence globally. On behalf of Norbert and the
rest of our team, we are very excited to be part of the CECO
family. This is truly a great fit all around."
Phillip
DeZwirek, CECO's Chairman stated, "The acquisition of
Aarding is highly accretive to CECO shareholders as well as
expanding our global portfolio and enhancing our core technology in
one of the highest growth areas of our industry. We have been
truly impressed with the Aarding team and their world class product
innovations, high growth rate and market reach."
Under the terms of the acquisition, CECO paid approximately
$24.0 million in cash and
$7.8 million in CECO shares on
closing with a $7.2 million earn-out
paid over a five-year period. Additional details of the transaction
will be included in a Current Report on Form 8-K to be filed by the
Company with the SEC.
ABOUT CECO ENVIRONMENTAL
CECO Environmental is a
leading global provider of air pollution control technology.
Through its subsidiaries – Adwest Technologies, Busch
International, CECO Filters, CECO Abatement Systems, Kirk &
Blum, Effox-Flextor, Fisher-Klosterman/Buell, CECO China and A.V.C.
Specialists – CECO provides a wide spectrum of air quality products
and services including engineered equipment, cyclones, scrubbers,
dampers, diverters, RTOs, component parts and monitoring and
management services. Industries served include refining,
petrochemical, power, natural gas, aluminum, steel, automotive,
chemical and large industrial processes. Revenue from
engineered equipment technology is approximately 70% and revenue
from parts, services and aftermarket is approximately 30%. Global
growth, operational excellence, margin expansion, safety leadership
and employee development are CECO's core competencies and long term
objectives.
For more information on CECO Environmental, please visit
www.cecoenviro.com and for more information on Aarding, please
visit www.aarding.com.
Contact:
Corporate Information
Phillip DeZwirek, Chairman
Jeff Lang, Chief Executive
Officer
CECO Environmental Corp.
1-800-333-5475
This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All forward-looking statements are subject to certain risks,
uncertainties and assumptions. These risks and uncertainties, which
are more fully described in CECO's Annual and Quarterly Reports
filed with the Securities and Exchange Commission, include, but are
not limited to: our dependence on fixed price contracts and the
risks associated therewith, including actual costs exceeding our
estimates and our method of accounting for contract revenue; our
history of losses and possibility of further losses; fluctuations
in operating results from period to period due to seasonality of
our business; the effect of growth on our infrastructure,
resources, and existing sales; our ability to expand our operations
in both new and existing markets; the potential for contract delay
or cancellation; the potential for fluctuations in prices for
manufactured components and raw materials; the impact of federal,
state or local government regulations; economic and political
conditions generally; and the effect of competition in the air
pollution control and industrial ventilation industry. Should one
or more of these risks or uncertainties materialize, or should the
assumptions prove incorrect, actual results may vary in material
aspects from those currently anticipated. Investors are cautioned
not to place undue reliance on such forward-looking statements as
they speak only to our views as of the date the statement is made.
Except as required by law, we undertake no obligation to publicly
update or revise any forward-looking statements, whether because of
new information, future events or otherwise.
SOURCE CECO Environmental Corp.