CECO Environmental Announces Closing of Acquisition of Profire Energy
CECO Environmental has completed its acquisition of Profire Energy on January 3, 2025, following a cash tender offer at $2.55 per share. The total transaction value was approximately $122.7 million, funded through a combination of cash on hand and existing credit facility borrowings.
Profire Energy, formerly traded on NASDAQ under PFIE, is a technology company specializing in intelligent control solutions for industrial combustion appliances, with primary operations in Lindon, Utah and Acheson, Alberta. The acquisition advances CECO's position as a leading environmental solutions provider in industrial markets.
Following the completion of the tender offer and merger conditions, Profire's common stock has been delisted from public markets. CECO aims to accelerate Profire's growth by expanding into new energy, industrial, and international markets.
CECO Environmental ha completato l'acquisizione di Profire Energy il 3 gennaio 2025, a seguito di un'offerta di acquisto in contante a $2.55 per azione. Il valore totale della transazione è stato di circa $122.7 milioni, finanziato attraverso una combinazione di liquidità disponibile e prestiti da linee di credito esistenti.
Profire Energy, precedentemente quotata al NASDAQ con il simbolo PFIE, è una società tecnologica specializzata in soluzioni di controllo intelligente per apparecchi di combustione industriale, con operazioni principali a Lindon, Utah e Acheson, Alberta. L'acquisizione rafforza la posizione di CECO come fornitore leader di soluzioni ambientali nei mercati industriali.
Dopo il completamento dell'offerta di acquisto e delle condizioni di fusione, le azioni ordinarie di Profire sono state rimosse dai mercati pubblici. CECO mira ad accelerare la crescita di Profire espandendosi in nuovi mercati energetici, industriali e internazionali.
CECO Environmental ha completado su adquisición de Profire Energy el 3 de enero de 2025, tras una oferta de compra en efectivo a $2.55 por acción. El valor total de la transacción fue de aproximadamente $122.7 millones, financiado a través de una combinación de efectivo disponible y préstamos de líneas de crédito existentes.
Profire Energy, que anteriormente cotizaba en NASDAQ bajo el símbolo PFIE, es una empresa de tecnología especializada en soluciones de control inteligente para aparatos de combustión industrial, con operaciones principales en Lindon, Utah, y Acheson, Alberta. La adquisición avanza la posición de CECO como proveedor líder de soluciones ambientales en mercados industriales.
Tras la finalización de la oferta de compra y las condiciones de fusión, las acciones ordinarias de Profire han sido excluidas de los mercados públicos. CECO tiene como objetivo acelerar el crecimiento de Profire expandiéndose a nuevos mercados energéticos, industriales e internacionales.
CECO Environmental는 2025년 1월 3일 Profire Energy를 인수했다고 발표했습니다. 이번 인수는 주당 $2.55의 현금 인수 제안에 따라 이루어졌습니다. 전체 거래 가치는 약 $122.7 백만으로, 현금 및 기존 신용 시설 대출의 조합을 통해 자금을 조달하였습니다.
Profire Energy는 과거 NASDAQ에서 PFIE라는 기호로 거래되던 기술 회사로, 산업용 연소 기기에 대한 지능형 제어 솔루션을 전문으로 하며, 유타주 린돈과 앨버타주 에이치슨에서 주로 운영합니다. 이번 인수로 CECO는 산업 시장에서 환경 솔루션 제공업체로서의 입지를 강화하게 됩니다.
인수 제안 및 합병 조건 완료 후, Profire의 보통주는 공개 시장에서 상장 폐지되었습니다. CECO는 Profire의 성장을 가속화하기 위해 새로운 에너지, 산업 및 국제 시장으로 확장할 계획입니다.
CECO Environmental a finalisé son acquisition de Profire Energy le 3 janvier 2025, suite à une offre publique d'achat en espèces de 2,55 $ par action. La valeur totale de la transaction s'élevait à environ 122,7 millions de dollars, financée par une combinaison de liquidités disponibles et d'emprunts auprès de lignes de crédit existantes.
Profire Energy, anciennement cotée au NASDAQ sous le symbole PFIE, est une entreprise technologique spécialisée dans des solutions de contrôle intelligent pour les appareils de combustion industriels, avec des opérations principales à Lindon, Utah, et Acheson, Alberta. L'acquisition renforce la position de CECO en tant que leader des solutions environnementales sur les marchés industriels.
À la suite de l'achèvement de l'offre d'achat et des conditions de fusion, les actions ordinaires de Profire ont été radiées des marchés publics. CECO vise à accélérer la croissance de Profire en s'étendant à de nouveaux marchés énergétiques, industriels et internationaux.
CECO Environmental hat am 3. Januar 2025 die Übernahme von Profire Energy abgeschlossen, nachdem ein barer Übernahmeangebot zu einem Preis von $2.55 pro Aktie abgegeben wurde. Der Gesamtwert der Transaktion betrug ca. $122.7 Millionen, das durch eine Kombination aus verfügbaren Mitteln und bestehenden Kreditlinien finanziert wurde.
Profire Energy, die früher unter PFIE an der NASDAQ gehandelt wurde, ist ein Technologieunternehmen, das sich auf intelligente Steuerungslösungen für industrielle Brenngeräte spezialisiert hat, mit Hauptstandorten in Lindon, Utah und Acheson, Alberta. Die Übernahme stärkt CECOs Position als führender Anbieter von Umweltschutzlösungen auf den Industriemärkten.
Nach Abschluss des Übernahmeangebots und der Fusionsbedingungen wurde die Stammaktie von Profire von den öffentlichen Märkten delistet. CECO zielt darauf ab, das Wachstum von Profire zu beschleunigen, indem es in neue Energie-, Industrie- und internationale Märkte expandiert.
- Strategic acquisition expanding CECO's environmental solutions portfolio
- Access to Profire's intelligent control technology and solutions
- Geographic expansion with operations in Utah and Alberta
- Potential growth opportunities in new energy and international markets
- Significant debt increase due to $122.7M acquisition cost
- Increased leverage through credit facility borrowings
Insights
The
The merger creates substantial operational synergies in the industrial combustion control market. With Profire's expertise in intelligent control solutions and CECO's established market presence, the combined entity is well-positioned to capture increased market share in both traditional and emerging energy sectors. The integration of Profire's technology-driven solutions into CECO's portfolio should drive margin expansion and revenue growth opportunities.
From a market perspective, this acquisition enhances CECO's competitive positioning in the growing environmental solutions sector, particularly as industries face increasing pressure to improve operational efficiency while reducing environmental impact. The deal's timing aligns with broader industry trends toward automation and environmental compliance, potentially creating significant upside for shareholders.
Profire's intelligent control solutions represent a strategic technological asset for CECO, particularly in the industrial IoT and automation space. Their combustion management systems incorporate advanced sensors and control algorithms that optimize industrial processes while reducing emissions - a critical capability as industries transition toward greener operations.
The acquisition positions CECO to leverage Profire's established technological infrastructure across its broader customer base. The combination of Profire's specialized control systems with CECO's environmental solutions creates a comprehensive technology stack that addresses both efficiency and environmental compliance needs. This technological integration could accelerate product development cycles and create new revenue streams through enhanced offerings.
This acquisition strategically positions CECO in high-growth market segments within the industrial environmental solutions sector. The global industrial automation market, particularly in environmental control systems, is experiencing robust growth driven by stringent regulations and increasing focus on operational efficiency. Profire's strong presence in key markets like Utah and Alberta provides CECO with enhanced geographical reach and established customer relationships.
The timing of this acquisition is particularly advantageous given the increasing focus on environmental compliance and energy efficiency across industrial sectors. The deal strengthens CECO's competitive position against larger industrial technology providers and creates opportunities for market share expansion in both domestic and international markets. The integration of Profire's solutions into CECO's portfolio should drive cross-selling opportunities and accelerate market penetration in new industrial segments.
Advances CECO’s Position as the Leading Environmental Solutions Provider in Industrial Markets
ADDISON, Texas, Jan. 09, 2025 (GLOBE NEWSWIRE) -- CECO Environmental Corp. (Nasdaq: CECO) (“CECO”), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment, and industrial equipment, today announced the closing of its acquisition of Profire Energy, Inc., as of January 3, 2025, (formerly NASDAQ: PFIE) (“Profire”), a technology company and industry-leading provider of intelligent control solutions that enhance the efficiency, safety, and reliability of industrial combustion appliances while mitigating potential environmental impacts related to the operation of these devices with its primary operations in Lindon, Utah and Acheson, Alberta.
As previously announced, CECO, Combustion Merger Sub and PFIE entered into an Agreement and Plan of Merger on October 28, 2024, pursuant to which CECO commenced a cash tender offer to acquire all of the issued and outstanding shares of PFIE common stock at a price of
On January 3, 2025, following the expiration of the tender offer and acceptance for payment of the shares validly tendered and not validly withdrawn pursuant to the tender offer and the satisfaction of the remaining conditions to the merger, the Company completed its acquisition of PFIE. As a result of the completion of the transaction, PFIE’s common stock is no longer listed on any public market. The aggregate consideration paid by CECO to acquire the shares of PFIE was approximately
“I am excited to welcome the Profire team to CECO as we advance our strategic portfolio of leading environmental solution businesses in niche energy and industrial markets,” said Todd Gleason, CECO’s Chief Executive Officer. “Together, I believe that we will accelerate Profire's growth by accelerating expansion in new energy, industrial and international markets.”
ABOUT CECO ENVIRONMENTAL
CECO Environmental is a leading environmentally focused, diversified industrial company, serving a broad landscape of industrial air, industrial water, and energy transition markets globally through its key business segments: Engineered Systems and Industrial Process Solutions. Providing innovative technology and application expertise, CECO helps companies grow their business with safe, clean, and more efficient solutions that help protect people, the environment and industrial equipment. In regions around the world, CECO works to improve air quality, optimize the energy value chain, and provide custom solutions for applications in power generation, petrochemical processing, refining, midstream gas transport and treatment, electric vehicle and battery production, metals and mineral processing, polysilicon production, battery recycling, beverage can production, and produced and oily water/wastewater treatment along with a wide range of other industrial applications. CECO is listed on Nasdaq under the ticker symbol “CECO.” Incorporated in 1966, CECO’s global headquarters is in Dallas, Texas. For more information, please visit www.cecoenviro.com.
SAFE HARBOR STATEMENT
Any statements contained in this Press Release, other than statements of historical fact, including statements about management's beliefs and expectations, are forward-looking statements and should be evaluated as such. These statements are made on the basis of management's views and assumptions regarding future events and business performance and include, but are not limited to, statements about CECO's expectations regarding the integration of PFIE into CECO; the benefits of the acquisition of PFIE and the expectations regarding the transaction's impact on CECO's strategic growth plan. We use words such as "believe," "expect," "anticipate," "intends," "estimate," "forecast," "project," "will," "plan," “feel,” "should" and similar expressions to identify forward-looking statements. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Potential risks and uncertainties that could cause actual results to differ materially include risks regarding the effect of the transaction on business relationships, operating results, and business generally, disruption of current plans and operations and potential difficulties in employee retention as a result of the transaction, diversion of management’s attention from ongoing business operations in connection with the integration of the transaction, the outcome of any legal proceedings that have been or may in the future be instituted related to the transaction, the amount of the costs, fees, expenses and other charges related to the transaction, the achievement of the anticipated benefits of the transaction, the ability of PFIE to achieve its earnings guidance, our ability to successfully integrate acquired businesses and realize the synergies from acquisitions, as well as a number of factors related to our business, including the sensitivity of our business to economic and financial market conditions generally and economic conditions in our service areas; dependence on fixed price contracts and the risks associated therewith, including actual costs exceeding estimates and method of accounting for revenue; the effect of growth on our infrastructure, resources, and existing sales; the ability to expand operations in both new and existing markets; the potential for contract delay or cancellation as a result of on-going or worsening supply chain challenges; liabilities arising from faulty services or products that could result in significant professional or product liability, warranty, or other claims; changes in or developments with respect to any litigation or investigation; failure to meet timely completion or performance standards that could result in higher cost and reduced profits or, in some cases, losses on projects; the potential for fluctuations in prices for manufactured components and raw materials, including as a result of tariffs and surcharges, and rising energy costs; inflationary pressures relating to rising raw material costs and the cost of labor; the substantial amount of debt incurred in connection with our strategic transactions and our ability to repay or refinance it or incur additional debt in the future; the impact of federal, state or local government regulations; our ability to repurchase shares of our common stock and the amounts and timing of repurchases, if any; our ability to successfully realize the expected benefits of our restructuring program; our ability to successfully integrate acquired businesses and realize the synergies from strategic transactions; the unpredictability and severity of catastrophic events, including cyber security threats, acts of terrorism or outbreak of war or hostilities or public health crises, as well as management's response to any of the aforementioned factors; and our ability to remediate our material weakness, or any other material weakness that we may identify in the future that could result in material misstatements in our financial statements. Additional risks and uncertainties are discussed under "Part I – Item 1A. Risk Factors" of CECO's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and may be included in subsequently filed Quarterly Reports on Form 10-Q. Many of these risks are beyond management's ability to control or predict. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated. Investors are cautioned not to place undue reliance on such forward-looking statements as they speak only to our views as of the date the statement is made. Except as required under the federal securities laws or the rules and regulations of the Securities and Exchange Commission, we undertake no obligation to update or review any forward-looking statements, whether as a result of new information, future events or otherwise.
CECO Company Contact:
Peter Johansson
Chief Financial and Strategy Officer
888-990-6670
796-5127
Investor Relations Contact:
Steven Hooser
Three Part Advisors
214-872-2710
Investor.Relations@OneCECO.com
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