Kadant to acquire Carmanah
By press release
November 4, 2013, Westford – Kadant has entered into a definitive agreement to acquire Carmanah Design and Manufacturing for CAD 54 million in cash, subject to a post-closing adjustment. Carmanah is a global leader in the design and manufacture of stranders and related equipment used in the production of oriented strand board (OSB), an engineered wood panel product used primarily in home construction. Carmanah also supplies debarking and wood chipping equipment used in both the forest products and the pulp and paper industries.
"I'm pleased to extend our presence into the forest products industry with the acquisition of Carmanah," said Jonathan W. Painter, president and chief executive officer of Kadant Inc. "Carmanah is the world leader in stranding equipment and we expect that the company will make a strong contribution to our business in 2014 and beyond. Industry analysts expect the annual growth rate of OSB production to be just under 10 per cent per year over the next five years in North America. With more than 70 percent of Carmanah's business coming from parts and consumables, this acquisition will also advance our strategic plan to increase our aftermarket revenues."
Michael Colwell, president of Carmanah Design and Manufacturing commented, "We are excited to join Kadant and believe its global footprint will provide an opportunity for Carmanah to enhance its global market position. Kadant's emphasis on product quality and customer-driven solutions fits well with Carmanah's culture."
Carmanah is based in Surrey, British Columbia, just outside of Vancouver. The company has 73 employees and generated approximately CAD 7 million of EBITDA, including CAD 1 million of non-recurring expenses, on revenues of CAD 29 million for its fiscal year ended March 31, 2013.
Kadant Inc. is a leading supplier to the global pulp and paper industry. Its stock-preparation; fluid-handling; and doctoring, cleaning, and filtration products are designed to increase efficiency and improve quality in pulp and paper production. Many of its products, particularly in the fluid-handling product line, are also used to optimize production in other process industries. In addition, the company produces granules from papermaking byproducts for agricultural and lawn and garden applications.
Kadant is based in Westford, Massachusetts, with revenues of $332 million in 2012 and 1,600 employees in 17 countries worldwide. For more information, visit www.kadant.com.