Components and engineered systems supplier Kadant entered into a definitive agreement to acquire the forest products business of NII FPG Company for USD 173 million in cash, subject to a post-closing adjustment. The transaction is expected to close in July 2017.
NII FPG is a global leader in the design and manufacture of equipment used by sawmills, veneer mills, and other manufacturers in the forest products industry. The company also designs and manufactures harvesting equipment used in cutting, gathering, and removing timber from forest plantations. The forest products business of NII FPG Company includes two primary manufacturing facilities and approximately 275 employees worldwide with reported revenue of approximately USD 81 million for the 12 months ended December 31, 2016.
Jonathan Painter, president and chief executive officer of Kadant Inc, commented:
“Our acquisition of the forest products business of NII FPG extends our presence deeper into the forest products industry and complements our existing wood processing product line. NII FPG is a leader in its markets with a history of stable earnings, a strong parts and consumables business, and a solid reputation as a premium manufacturer of products that have a high impact in customers’ operations. We expect the company will make a strong contribution to our business. With more than 50 percent of NII FPG’s business coming from parts and consumables, this acquisition will also advance our strategic plan to increase our aftermarket revenue.”
Earlier Kadant announced that its Board of Directors has approved a quarterly cash dividend.