CECO Environmental Announces The Acquisition Of Aarding Thermal Acoustics B.V.
A leading global technology provider of natural gas turbine exhaust systems.
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.
Phillip DeZwirek, Chairman
Jeff Lang, Chief Executive Officer
CECO Environmental Corp.
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.
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