WESTFORD, Mass.--(BUSINESS WIRE)--Nov. 1, 2013--
Kadant Inc. (NYSE: KAI) announced that it has entered into a definitive
agreement to acquire Carmanah Design and Manufacturing Inc. for Canadian
dollars (CAD) 54 million in cash, or approximately USD 52 million,
subject to a post-closing adjustment. Carmanah is a global leader in the
design and manufacture of stranders and related equipment used in the
production of oriented strand board (OSB), an engineered wood panel
product used primarily in home construction. Carmanah also supplies
debarking and wood chipping equipment used in both the forest products
and the pulp and paper industries.
“I’m pleased to extend our presence into the forest products industry
with the acquisition of Carmanah,” said Jonathan W. Painter, president
and chief executive officer of Kadant Inc. “Carmanah is the world leader
in stranding equipment and we expect that the company will make a strong
contribution to our business in 2014 and beyond. Industry analysts
expect the annual growth rate of OSB production to be just under 10
percent per year over the next five years in North America. With more
than 70 percent of Carmanah’s business coming from parts and
consumables, this acquisition will also advance our strategic plan to
increase our aftermarket revenues.”
Michael Colwell, president of Carmanah Design and Manufacturing Inc.,
commented, “We are excited to join Kadant and believe its global
footprint will provide an opportunity for Carmanah to enhance its global
market position. Kadant’s emphasis on product quality and
customer-driven solutions fits well with Carmanah’s culture.”
Carmanah is based in Surrey, British Columbia, just outside of
Vancouver. The company has 73 employees and generated approximately CAD
7 million of EBITDA, including CAD 1 million of non-recurring expenses,
on revenues of CAD 29 million for its fiscal year ended March 31, 2013.
Kadant Inc. is a leading supplier to the global pulp and paper industry.
Our stock-preparation; fluid-handling; and doctoring, cleaning, and
filtration products are designed to increase efficiency and improve
quality in pulp and paper production. Many of our products, particularly
in our Fluid-Handling product line, are also used to optimize production
in other process industries. In addition, we produce granules from
papermaking byproducts for agricultural and lawn and garden
applications. Kadant is based in Westford, Massachusetts, with revenues
of $332 million in 2012 and 1,600 employees in 17 countries worldwide.
For more information, visit www.kadant.com.
The 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 Carmanah Design and Manufacturing Inc., the
benefits of the transaction, the expected future business and financial
performance of the acquired company following the transaction and the
forecasted growth of the OSB industry. Important factors could cause
actual results to differ materially from those indicated by such
statements, including: the ability to consummate the transaction, 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 OSB industry and housing markets and other factors, including those
set forth under the heading “Risk Factors” in Kadant’s quarterly report
on Form 10-Q for the period ended June 29, 2013. These include risks and
uncertainties relating to our dependence on the pulp and paper industry;
significance of sales and operation of manufacturing facilities in
China; commodity and component price increases or shortages;
international sales and operations; our acquisition strategy; our
internal growth strategy; fluctuations in currency exchange rates;
competition; soundness of suppliers and customers; our effective tax
rate; future restructurings; soundness of financial institutions; our
debt obligations; restrictions in our credit agreement; 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.
Source: Kadant Inc.
Kadant Inc.
Investor contact:
Thomas M. O’Brien, 978-776-2000
or
Media
contact:
Wes Martz, 269-278-1715
