CECO Environmental Corp
) recently announced that it has signed an agreement to acquire
). Met-Pro is a niche-oriented provider of product recovery,
pollution control, fluid handling and filtration solutions across
multiple diversified end-markets, globally.
As per the terms of the agreement, CECO will purchase all the
outstanding shares of Met-Pro common stock in a cash and stock
transaction. The total value of the deal is approximately $210
million, or $13.75 per share, reflecting a 43% premium to
Met-Pro's share price as on the close of April 19, 2013.
In addition, the purchase includes $7.25 per share in cash and
$6.50 per share in CECO common stock. Further, according to the
terms of the agreement, Met-Pro's shareholders may also choose to
exchange each share of Met-Pro common stock for either $13.75 in
cash and/or shares of CECO shares. For this, CECO shares need to
have a value based on the volume weighted average trading price
of CECO common stock for the 15-trading day period ending on the
day immediately previous to the closing of the acquisition.
Post the acquisition, CECO becomes a market leader in air
pollution control, product recovery and fluid handling
technology, globally. The products and offerings of both the
companies perfectly complement each other and provide a wider
portfolio of services.
After the acquisition, CECO expects to serve a customer base
of more than 11,500 worldwide. The combined businesses will offer
a broader set of products and services through a truly end-to-end
pollution control technology solution in an environment where
customers are increasingly demanding comprehensive solutions from
fewer vendors and service providers.
Apart from this, the acquisition will also benefit CECO with a
well-balanced geographic portfolio of products and services in
key emerging markets. The transaction is expected to be accretive
to CECO's earnings per share, margins and cash flow. The combined
company expects to generate revenues of about $300 million and
about $9 million in cost synergies once operational.
CECO Environmental currently has a Zacks Rank #2 (Buy). Some
other companies operating in the same industry and also worth
considering at the moment are
Calgon Carbon Corp.
) which has a Zacks Rank #1 (Strong Buy) and
Industrial Services of America, Inc.
), both of which have a Zacks Rank #2 (Buy).
CALGON CARBON (CCC): Free Stock Analysis
CECO ENVIRNMNTL (CECE): Free Stock Analysis
FUEL TECH INC (FTEK): Free Stock Analysis
INDUSTRIAL SVCS (IDSA): Free Stock Analysis
MET-PRO CORP (MPR): Free Stock Analysis
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