WESTFORD, Mass.--(BUSINESS WIRE)--Jul. 5, 2017--
Kadant Inc. (NYSE: KAI) announced today the completion of its
acquisition of the forest products business of NII FPG Company, a global
leader in the design and manufacture of equipment used by sawmills,
veneer mills, and other manufacturers in the forest products industry,
for approximately $173 million, net of cash acquired, subject to a
post-closing adjustment. The transaction was financed through borrowings
under the Company’s revolving credit facility. The business will be
integrated into Kadant’s Wood Processing Segment.
“We are pleased to complete this transaction and welcome our new
colleagues from NII FPG to the Kadant family,” said Jonathan Painter,
president and chief executive officer of Kadant. “With NII FPG’s leading
position in its markets and a strong parts and consumables business, we
are confident the company will be a solid contributor toward achieving
our strategic initiative of growing our aftermarket business. NII FPG is
an excellent strategic fit with our wood processing product line and we
look forward to the value it will create for our customers and our
shareholders.”
The forest products business of NII FPG Company has 275 employees
worldwide and generated revenue of approximately $81 million for the
twelve months ended December 31, 2016.
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 2,300 employees in 20 countries worldwide. For more
information, visit www.kadant.com.
Safe Harbor Statement
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 NII FPG
Company, the benefits of the transaction, and the expected future
business and financial performance of the acquired company. Important
factors could cause actual results to differ materially from those
indicated by such statements, including: 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 forest products
industry and other factors, including those set forth under the heading
"Risk Factors" in Kadant’s annual report on Form 10-K for the year ended
December 31, 2016 and subsequent filings with the Securities and
Exchange Commission. These include risks and uncertainties relating to
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; our
customers’ ability to obtain financing for capital equipment projects;
changes in government regulations and policies; 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;
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/20170705006039/en/
Source: Kadant Inc.
Kadant Inc.
Investor Contact Information:
Michael McKenney,
978-776-2000
mike.mckenney@kadant.com
or
Media
Contact Information:
Wes Martz, 269-278-1715
wes.martz@kadant.com
