WESTFORD, Mass.--(BUSINESS WIRE)--Apr. 4, 2016--
Kadant Inc. (NYSE: KAI) announced today that it has acquired all of the
outstanding shares of RT Holding GmbH, the parent corporation of a group
of companies known as the PAALGROUP (PAAL) for approximately 51 million
Euros in cash, or approximately USD $58 million. PAAL manufactures
channel balers and related equipment used in the processing of
recyclable and waste materials. The company is headquartered in Germany
and has operations in Germany, the United Kingdom, France, and Spain.
“Our acquisition of PAAL broadens our product portfolio and extends our
presence deeper into recycling and waste management,” said Jonathan W.
Painter, president and chief executive officer of Kadant Inc. “With its
strong aftermarket business and emphasis on product innovation, PAAL is
an excellent fit with Kadant.”
Franzotto Hornung, president and chief executive officer of PAAL,
commented, “We are excited to join Kadant and become a part of this
dynamic organization. Kadant’s global platform and business model offers
a number of exciting opportunities to extend PAAL’s leading market
position in Europe to geographic regions around the globe.”
PAAL was founded in 1854 in Osnabrück, Germany. Its primary products
include horizontal balers and conveyors used to process various
materials including paper, plastic, and metal. The company is the
leading European manufacturer of channel balers with a global presence.
PAAL has 193 employees and revenues of approximately 48 million Euros
for its fiscal year ended December 31, 2015.
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 revenues of $390 million in fiscal 2015
and 1,800 employees in 18 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 our customers,
products, and technologies. Our actual results may 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 January 2, 2016.
These include risks and uncertainties relating to adverse changes in
global and local economic conditions; the variability and difficulty in
accurately predicting revenue from large capital equipment and systems
projects; the variability and uncertainties in sales of capital
equipment in China; the effect of currency fluctuations on our financial
results; our 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; 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/20160404005895/en/
Source: Kadant Inc.
Kadant Inc.
Investor contact:
Michael McKenney, 978-776-2000
or
Media
contact:
Wes Martz, 269-278-1715
