Westford, Massachusetts (December 10, 2018)—Kadant Inc. has entered into a definitive agreement to acquire Syntron Material Handling Group LLC and certain of its affiliates (Syntron) from entities affiliated with Levine Leichtman Capital Partners for approximately $179 million in cash, subject to certain customary adjustments.
Syntron is a provider of material handling equipment and systems to various process industries, including mining, aggregates, food processing, packaging and pulp and paper. The company manufactures conveying and vibratory equipment at its facilities in Tupelo, Mississippi, and Changshu, China, under the Link-Belt and Syntron brands. Syntron has approximately 250 employees worldwide and its trailing twelve months revenue, which ended October 31, 2018, was approximately $89 million.
“Our acquisition of Syntron provides Kadant with premier products and services that extend our footprint into new process industries,” said Jonathan Painter, president and chief executive officer of Kadant. “Like Kadant, Syntron’s technology adds high value to critical processes in resource-intensive industries and is a leader in its markets with a history of stable earnings and a strong aftermarket business. In addition, Syntron has an excellent management team, which we expect will make a strong contribution to our business."
Kadant also announced that prior to entering into the purchase agreement to acquire Syntron, it entered into a limited consent under the company’s existing credit agreement, pursuant to which lenders under the credit agreement will limit certain funding conditions. The company may request to fund a portion of its acquisition of Syntron. The acquisition is expected to close in January 2019, subject to the satisfaction of customary closing conditions.
For more information, visit kadant.com.
