Kadant Acquires KWS Manufacturing Company
January 24 2024 - 4:27PM
Kadant Inc. (NYSE: KAI) today announced it has completed the
acquisition of KWS Manufacturing Company, Ltd. (“KWS”) for
approximately $84 million in cash, subject to certain customary
adjustments. The acquisition was financed primarily through
borrowings under Kadant's revolving credit facility.
KWS is a leading manufacturer of conveying
equipment for the bulk material handling industry. The company
manufactures screw conveyors, screw feeders, slide gates, and
bucket elevators for process industries, including the food,
chemicals, and wood industries. Located in Burleson, Texas, with
approximately 165 employees, KWS had revenue of $45 million for the
trailing twelve months ended September 30, 2023. KWS will become
part of Kadant’s Material Handling reporting segment.
“We are pleased to welcome our colleagues from KWS
to the Kadant family,” said Jeffrey L. Powell, president and chief
executive officer of Kadant. “Our acquisition of KWS expands our
respective product portfolios and enhances our internal
capabilities. With our shared focus on bringing highly engineered
customer solutions to process industries and our past successes
working together, we believe KWS is an excellent fit with
Kadant.”
William C. Mecke, president of KWS, commented, “We
are proud of the leading position KWS has established in the screw
conveyor market. Our reputation for quality products and excellent
service fits well with Kadant’s culture and values. We look forward
to being a part of Kadant and leveraging opportunities to increase
value for our customers and other stakeholders.”
Conference CallKadant will hold a
conference call and webcast on Monday, January 29, 2024 at 1:00
p.m. eastern time to discuss the acquisition. To listen to the call
and view the webcast, go to the “Investors” section of the
Company’s website at www.kadant.com. Participants interested in
joining the call’s live question and answer session are required to
register by clicking here or selecting the Q&A link on our
website to receive a dial-in number and unique pin. It is
recommended that you join the call 10 minutes prior to the start of
the event. A replay of the webcast presentation will be available
on the Company’s website through March 1, 2024.
About Kadant Kadant Inc. is a
global supplier of technologies and engineered systems that drive
Sustainable Industrial Processing. The Company’s products and
services play an integral role in enhancing efficiency, optimizing
energy utilization, and maximizing productivity in process
industries. Kadant is based in Westford, Massachusetts, with
approximately 3,400 employees in 20 countries worldwide. For more
information, visit www.kadant.com.
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 KWS, the benefits of the
acquisition of KWS (the “Acquisition”), and the expected future
business and financial performance of KWS and Kadant. These
forward-looking statements represent our expectations as of the
date of this press release. We undertake 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 our 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 fiscal year ended
December 31, 2022 and subsequent filings with the Securities and
Exchange Commission. These include risks and uncertainties relating
to Kadant's ability to successfully integrate KWS and its
operations and employees and realize anticipated benefits from the
Acquisition; unanticipated disruptions to the business, general and
regional economic conditions, and the future performance of KWS;
potential adverse reactions or changes to business or employee
relationships, including those resulting from the announcement of
the Acquisition; competitive, investor or customer responses to the
Acquisition; the ability to realize anticipated synergies 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; health
epidemics and pandemics; our acquisition strategy; levels of
residential construction activity; reductions by our wood
processing customers of their capital spending or production of
oriented strand board; changes to the global timber supply;
development and use of digital media; cyclical economic conditions
affecting the global mining industry; demand for coal, including
economic and environmental risks associated with coal; failure of
our information systems or breaches of data security and
cybertheft; implementation of our internal growth strategy; supply
chain constraints, inflationary pressure, price increases and
shortages in raw materials; competition; changes in our tax
provision or exposure to additional tax liabilities; our ability to
successfully manage our manufacturing operations; disruption in
production; future restructurings; loss of key personnel and
effective succession planning; protection of intellectual property;
climate change; adequacy of our insurance coverage; global
operations; policies of the Chinese government; the variability and
uncertainties in sales of capital equipment in China; currency
fluctuations; changes to government regulations and policies around
the world; compliance with government regulations and policies and
compliance with laws; environmental laws and regulations;
environmental, health and safety laws and regulations impacting the
mining industry; our debt obligations; restrictions in our credit
agreement and note purchase agreement; soundness of financial
institutions; fluctuations in our share price; and anti-takeover
provisions.
ContactsInvestor Contact
Information:Michael McKenney, 978-776-2000IR@kadant.comorMedia
Contact Information:Wes Martz, 269-278-1715media@kadant.com
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