Crawford United Corporation Acquires KMC

Rhea-AI Summary

Crawford United Corporation (OTC: CRAWA) has acquired the assets of Knitting Machinery Corporation of America (KMC), a Cleveland-based manufacturer of hose reinforcement machinery. This strategic move aims to expand Crawford's footprint in the industrial hose market. The acquisition is projected to generate less than $2 million in annual revenue and is expected to boost earnings immediately. Brian Powers, CEO of Crawford United, emphasized the importance of this acquisition in diversifying the company's customer base in a growing market segment.

Positive

• Acquisition of KMC enhances Crawford's presence in the industrial hose market.
• Expected to add less than $2 million in annual revenue.
• Acquisition projected to be immediately accretive to earnings.

Negative

• None.

CLEVELAND, May 02, 2022 (GLOBE NEWSWIRE) -- Crawford United Corporation (OTC: CRAWA) today announced the purchase of the assets of Knitting Machinery Corporation of America (KMC), located in Cleveland, Ohio.   KMC designs and manufactures hose reinforcement machinery and replacement parts for the makers of rubber and silicone hoses.     

“KMC is strategically important to our growing presence in the industrial hose market,” said Brian Powers, CEO of Crawford United. “This acquisition will expand our offerings and diversify our customer base in this growing market segment,” he added.

The acquisition is expected to add less than $2 million in annualized revenue and be immediately accretive to earnings.

About Crawford United Corporation. Crawford United Corporation is a growth-oriented holding company providing specialty industrial products to diverse markets, including healthcare, education, aerospace, defense, and transportation. For more information, go to www.crawfordunited.com.

Information about Forward Looking Statements. This press release contains forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements made regarding the company’s future results. Generally, these statements can be identified by the use of words such as “guidance,” “outlook,” “believes,” “estimates,” “anticipates,” “expects,” “forecasts,” “seeks,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “could,” “would” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements, or other statements made by the Company, are made based upon management’s expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors (including, but not limited to, those specified below) which are difficult to predict and, in many instances, are beyond the control of the Company. As a result, actual results of the Company could differ materially from those expressed in or implied by such forward looking statements. These uncertainties and factors include the Company’s ability to successfully integrate acquisitions, and manage the larger operations of the combined businesses, the Company’s dependence upon a limited number of customers in the aerospace industry, the highly competitive industry in which the Company operates, which includes several competitors with greater financial resources and larger sales organizations, the Company’s ability to capitalize on market opportunities in certain sectors, the Company’s ability to obtain cost effective financing and the Company’s ability to satisfy obligations under its financing arrangements, statements related to the expected effects on the Company’s business of the COVID-19 pandemic, the duration and scope of the COVID-19 pandemic and impact on the demand for the Company’s products, actions that governments, businesses and individuals take in response to the pandemic, including mandatory business closures and restrictions on onsite commercial interactions and any re-imposed public health measures or tightened public health restrictions in response to any increased spread of new strains of COVID-19 in the Company’s markets, the impact of the pandemic and actions taken in response to the pandemic on global and regional economies and economic activity, the pace of recovery when the COVID-19 pandemic subsides, efforts made to combat COVID-19, including vaccine development and distribution, general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth, as well as the risks described from time to time in the Company’s reports as filed with the Securities and Exchange Commission. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in its most recent Form 10-K and subsequent filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.

Brian E. Powers
Chief Executive Officer
216-243-2449
bpowers@crawfordunited.com
“Crawford United has a great future behind it.”

FAQ

What is the significance of Crawford United's acquisition of KMC?

The acquisition expands Crawford's presence in the industrial hose market and diversifies its customer base.

How much revenue is expected from the KMC acquisition?

The acquisition is projected to generate less than $2 million in annual revenue.

Will the acquisition of KMC impact Crawford United's earnings?

Yes, the acquisition is expected to be immediately accretive to earnings.

What type of machinery does Knitting Machinery Corporation manufacture?

KMC designs and manufactures hose reinforcement machinery and replacement parts.