Complementary Tuck-in Acquisition Adds $16 million in Annual Revenues
DALLAS, June 4, 2020 /PRNewswire/ -- CECO Environmental Corp. ("CECO", Nasdaq: CECE), a leading global air quality and fluid handling technology company, today announced that it has completed the acquisition of Environmental Integrated Solutions Limited ("EIS"). Headquartered in Birmingham UK. EIS engineers products that clean air through a variety of technologies including VOC abatement, odor control, and other air pollution control solutions. This acquisition advances CECO's mission to solve the sustainability challenges that come with the demands of industrial progress.
"We are very excited with the acquisition of EIS and pleased to welcome their team to the CECO family. EIS further increases CECO's solution capability, application depth, and knowledge expertise as part of our growth strategy. EIS expands the coverage of our industrial customers across Europe, as well as leverages our current capabilities in North America," said Dennis Sadlowski, Chief Executive Officer of CECO Environmental. "The addition of EIS further elevates our leadership position in solving the most challenging air quality applications around the world. EIS will serve as a regional hub for CECO's Industrial Solutions segment and is expected to become a catalyst for accelerated growth into the European industrial markets."
Matt Eckl, CECO Environmental's Chief Financial Officer commented, "The acquisition of EIS gives us immediate access to new markets, adds approximately $16 million in annual revenues and provides CECO with incremental market and financial scale. This combination is a win-win as EIS will leverage CECO's supply chain in North America and CECO will gain access to EIS's network of production partners in Europe, further expanding our lucrative asset light business model. From a financial perspective, EIS brings above average EBITDA margins and strong free cash flows. At a purchase price of approximately $12.2 million, including a targeted earnout, the transaction is anticipated to deliver attractive value for CECO shareholders."
CECO Environmental is a global leader in air quality and fluid handling serving the energy, industrial and other niche markets. Providing innovative technology and application expertise, CECO helps companies grow their business with safe, clean and more efficient solutions that help protect our shared environment. In regions around the world, CECO works to improve air quality, optimize the energy value chain and provide custom engineered solutions for applications including oil and gas, power generation, water and wastewater, battery production, poly silicon fabrication, chemical and petrochemical processing along with a range of others. CECO is listed on Nasdaq under the ticker symbol "CECE".
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