Components and engineered systems supplier Kadant completed acquisition of the forest products business of NII FPG Company for USD 173 million in cash, net of cash acquired, subject to a post-closing adjustment.
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:
“We are pleased to complete this transaction and welcome our new colleagues from NII FPG to the Kadant family.
With NII FPG’s leading position in its markets and a strong parts and consumables business, we are confident the company will be a solid contributor toward achieving our strategic initiative of growing our aftermarket business. NII FPG is an excellent strategic fit with our wood processing product line and we look forward to the value it will create for our customers and our shareholders.”
The transaction was financed through borrowings under the Kadant’s revolving credit facility. The business will be integrated into Kadant’s Wood Processing Segment.
Earlier Kadant announced that its Board of Directors has approved a quarterly cash dividend.