CECO Environmental Corp has entered into a definitive agreement to acquire Met-Pro Corp in a cash and stock transaction valued at approximately US$210 million. New York Stock Exchange-listed Met-Pro is a global provider of product recovery, pollution control, fluid handling and filtration solutions, including pumps and filters, while Nasdaq-listed Ceco Environmental specialises in air pollution control technology systems, product recovery and filtration technology.
CECO will acquire all of the outstanding shares of Met-Pro common stock for US$13.75 per share, a 43% premium on Met-Pro’s share closing price on 19 April 2013. The consideration includes US$7.25 per share in cash and US$6.50 per share in CECO common stock. The CECO and Met-Pro boards of directors have unanimously approved the acquisition.
The acquisition creates a global leader in air pollution control, product recovery and fluid handling technology with pro forma revenues of approximately US$300 million. CECO chief executive officer (CEO) Jeff Lang will be CEO of the combined company, while Met-Pro president and CEO Raymond De Hont will become chief operating officer. "We believe this combination creates significant organic and inorganic opportunities to support continued growth in revenues, profitability and overall shareholder value, " said CECO’s Lang. "Importantly, the combined businesses will be uniquely positioned to capitalize on fast growing end markets and secular trends supported by increasingly stringent levels of pollution control regulation, increasing global energy demand, emerging market dynamics, most notably in China and India, and a low cost natural gas environment, driving new plant construction in the US and globally,” said CECO’s Lang.
“Joining forces with CECO will greatly enhance our product portfolio depth, while improving both our global reach and our ability to serve our customers. Met-Pro’s platform aligns well with CECO’s family of companies and we believe it is truly a great fit that brings together two high quality organizations with exceptionally talented people and complementary business models, capabilities and cultures,” added Met-Pro’s De Hont.
