Kadant to Buy Stock Prep Supplier in China
Jan. 26, 2006 - Kadant said that it has signed a definitive agreement to acquire substantially all the assets of the Jining Huayi Light Industry Machinery Co., Ltd. for approximately $20 million in cash, subject to adjustment.
Huayi is a supplier of stock-preparation systems in China. The company had unaudited revenues of about $15 million in 2005, Kadant said.
Kadant expects to finance the acquisition through a combination of cash and borrowings, in China or under its existing $25 million revolver.
The completion of the acquisition is subject to customary closing conditions, including regulatory approvals, as well as the approval of Kadant's board of directors.
Kadant expects the deal to close in the first quarter of 2006.
SOURCE: Kadant Inc.