CECO Completes Acquisition of Profire Energy
Deal News | Jan 09, 2025 | EIN
CECO Environmental Corp., an environmentally-focused industrial company based in Dallas, Texas, has successfully completed the acquisition of Profire Energy, Inc., a technology company known for its intelligent control solutions for industrial combustion appliances. The transaction, valued at approximately $122.7 million, was finalized on January 3, 2025, following a cash tender offer made on October 28, 2024. The acquisition is projected to bolster CECO's strategic portfolio in niche energy and industrial markets, broadening its ability to offer innovative environmental solutions, especially in new energy and international markets. Todd Gleason, CEO of CECO, expressed optimism about the synergy and growth potential the merger brings, aligning with CECO's ambition to maintain its leading status in environmental solutions. The acquisition was financed through cash on hand and borrowings under the company's existing credit facility. Assertions made regarding future expectations and benefits of this merger reflect forward-looking statements, contingent upon various uncertainties and risk factors outlined in CECO's latest financial reports.
Sectors
- Environmental Solutions
- Industrial Technology
- Energy
Geography
- United States – CECO Environmental is headquartered in Texas and Profire Energy operates primarily in Utah, placing both companies within the U.S. market.
- Canada – Profire Energy also has operations in Acheson, Alberta, indicating a presence in the Canadian market.
Industry
- Environmental Solutions – The acquisition emphasizes CECO's role in offering environmentally-focused industrial solutions, strengthening its portfolio in the environmental solutions sector.
- Industrial Technology – Profire Energy provides technology solutions for industrial combustion appliances, highlighting the industrial technology sector's role in this transaction.
- Energy – Both companies operate within the energy sector, with Profire Energy's solutions improving safety and efficiency in energy-related industrial applications.
Financials
- $2.55 per share – The cash tender offer price for shares of Profire Energy common stock.
- $122.7 million – The total aggregate consideration paid by CECO to acquire all shares of Profire Energy.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| CECO Environmental Corp. | Bidding Company/Acquirer | Company | An environmentally-focused, diversified industrial company based in Dallas, Texas, that provides solutions for industrial air, water, and energy transition markets. |
| Profire Energy, Inc. | Target Company | Company | A technology company specializing in intelligent control solutions for industrial combustion appliances, with operations in Lindon, Utah and Acheson, Alberta. |
| Todd Gleason | Chief Executive Officer | Person | CEO of CECO Environmental, responsible for strategic direction including integration of Profire Energy. |
| Combustion Merger Sub | Subsidiary involved in merger | Company | A subsidiary of CECO created to facilitate the merger with Profire Energy. |