Kadant to Acquire Carmanah Design and Manufacturing for $52 Million
Nov. 4, 2013 - Kadant Inc. announced that it has entered into a definitive agreement to acquire Carmanah Design and Manufacturing Inc. for Canadian dollars (CAD) 54 million in cash, or approximately USD 52 million, subject to a post-closing adjustment.
Carmanah is a global leader in the design and manufacture of stranders and related equipment used in the production of oriented strand board (OSB), an engineered wood panel product used primarily in home construction. Carmanah also supplies debarking and wood chipping equipment used in both the forest products and the pulp and paper industries.
“I’m pleased to extend our presence into the forest products industry with the acquisition of Carmanah,” said Jonathan W. Painter, president and chief executive officer of Kadant Inc. “Carmanah is the world leader in stranding equipment and we expect that the company will make a strong contribution to our business in 2014 and beyond. Industry analysts expect the annual growth rate of OSB production to be just under 10 percent per year over the next five years in North America. With more than 70 percent of Carmanah’s business coming from parts and consumables, this acquisition will also advance our strategic plan to increase our aftermarket revenues.”
Michael Colwell, president of Carmanah Design and Manufacturing Inc., commented, “We are excited to join Kadant and believe its global footprint will provide an opportunity for Carmanah to enhance its global market position. Kadant’s emphasis on product quality and customer-driven solutions fits well with Carmanah’s culture.”
Carmanah is based in Surrey, British Columbia, just outside of Vancouver. The company has 73 employees and generated approximately CAD 7 million of EBITDA, including CAD 1 million of non-recurring expenses, on revenues of CAD 29 million for its fiscal year ended March 31, 2013.
Kadant Inc. is a leading supplier to the global pulp and paper industry. The company's stock-preparation; fluid-handling; and doctoring, cleaning, and filtration products are designed to increase efficiency and improve quality in pulp and paper production. For more information, visit www.kadant.com..
SOURCE: Kadant Inc.