Kadant Acquires a Leading Expansion Joint Manufacturer
Kadant Inc. (NYSE: KAI) announced today the completion of its acquisition of certain assets of Unaflex, LLC for $31 million in
cash, subject to a post-closing adjustment. Unaflex is a leading manufacturer of expansion joints and related products for process
industries. Expansion joints, also known as compensators, are used in industrial piping systems to absorb thermal movement. They
are commonly used in industries such as petrochemical, power generation, and water treatment, among others.
“Our acquisition of the Unaflex business, a leader in the design and manufacture of elastomeric, metal, and fabric expansion
joints, will broaden our product portfolio offered to process industries that require critical components for maximum uptime and
operational efficiency,” said Jonathan Painter, president and chief executive officer of Kadant Inc. “With parts and consumables
making up virtually all the company’s revenue stream, it fits well with our strategy of growing our aftermarket business and we
expect the company to be a solid addition to our Fluid-Handling product line.”
Unaflex, LLC has its principal operation in South Carolina with approximately 140 employees and 2016 revenue of $18 million.
About Kadant
Kadant Inc. is a global supplier of high-value, critical components and engineered systems used in process industries worldwide.
The Company’s products, technologies, and services play an integral role in enhancing process efficiency, optimizing energy
utilization, and maximizing productivity in resource-intensive industries. Kadant is based in Westford, Massachusetts, with
approximately 2,300 employees in 20 countries worldwide. For more information, visit www.kadant.com.
Safe Harbor Statement
The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press
release contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements
about the financial and operating performance of the acquired business, the benefits of the transaction, and the expected future
business and financial performance of the acquired business. Important factors could cause actual results to differ materially from
those indicated by such statements, including: the ability to consummate the transaction, our ability to successfully integrate the
acquired business and realize anticipated benefits from the transaction, unanticipated disruptions to the business, general and
regional economic conditions, and the future performance of the acquired business as well as other factors, including those set
forth under the heading "Risk Factors" in Kadant’s annual report on Form 10-K for the year ended December 31, 2016 and subsequent
filings with the Securities and Exchange Commission. These include risks and uncertainties relating to adverse changes in global
and local economic conditions; the variability and difficulty in accurately predicting revenues from large capital equipment and
systems projects; the variability and uncertainties in sales of capital equipment in China; currency fluctuations; our customers’
ability to obtain financing for capital equipment projects; changes in government regulations and policies; oriented strand board
market and levels of residential construction activity; development and use of digital media; price increases or shortages of raw
materials; dependence on certain suppliers; international sales and operations; economic conditions and regulatory changes caused
by the United Kingdom’s likely exit from the European Union; disruption in production; our acquisition strategy; our internal
growth strategy; competition; soundness of suppliers and customers; our effective tax rate; future restructurings; soundness of
financial institutions; our debt obligations; restrictions in our credit agreement; loss of key personnel; reliance on third-party
research; protection of patents and proprietary rights; failure of our information systems or breaches of data security;
fluctuations in our share price; and anti-takeover provisions. We undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events, or otherwise.
Kadant Inc.
Investor Contact Information:
Michael McKenney, 978-776-2000
mike.mckenney@kadant.com
or
Media Contact Information:
Wes Martz, 269-278-1715
wes.martz@kadant.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20170814005966/en/