CECO Environmental Completes Profire Energy Acquisition
Deal News | Jan 09, 2025 | Globenewswire
CECO Environmental Corp., an industrial company focused on providing environmentally sustainable solutions, announced the closure of its acquisition of Profire Energy, a company specializing in intelligent control solutions for industrial combustion appliances. The merger was initiated following an Agreement and Plan of Merger signed on October 28, 2024. CECO launched a tender offer to buy all issued shares of Profire at $2.55 per share, leading to an aggregate acquisition cost of around $122.7 million, financed through cash on hand and existing credit facilities. With this acquisition, finalised on January 3, 2025, Profire's stock has been delisted from public exchanges. CECO's CEO, Todd Gleason, expressed excitement over the acquisition, noting it will bolster CECO's strategic position in energy and industrial markets. The transaction marks a significant step in CECO's efforts to integrate and expand through strategic acquisitions, despite the inherent risks and challenges involved.
Sectors
- Industrial Engineering
- Energy Technology
- Environmental Services
Geography
- United States – CECO Environmental is headquartered in Dallas, Texas, USA, where it leads operations and strategy for the acquisition.
- Canada – Profire Energy has operations in Acheson, Alberta, Canada, making it relevant to the article's geographical scope.
Industry
- Industrial Engineering – CECO Environmental operates as a provider of environmental solutions in the industrial engineering sector, focusing on air and water purification technologies.
- Energy Technology – Profire Energy, the company acquired, specializes in technology solutions that enhance the efficiency and safety of industrial combustion appliances, pertinent to the energy technology industry.
- Environmental Services – CECO is involved in providing environmental services via engineered systems aimed at improving industrial air and water quality.
Financials
- $122.7 million – The aggregate consideration paid by CECO to acquire Profire Energy.
- $2.55 per share – The cash tender offer price per share for Profire Energy stock.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| CECO Environmental Corp. | Acquirer | Company | A leading diversified industrial company focused on environmental solutions with its headquarters in Dallas, Texas. |
| Profire Energy, Inc. | Target | Company | A technology company providing intelligent control solutions for industrial combustion appliances, with operations in Utah and Alberta. |
| Todd Gleason | Chief Executive Officer | Person | CEO of CECO Environmental, overseeing the strategic acquisition of Profire Energy. |