Kadant Inc. acquired KWS Manufacturing Company, Ltd. for $84 million.
January 23, 2024
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Kadant Inc. (NYSE:KAI) acquired Kws Manufacturing Company, Ltd. for $84 million on January 24, 2024. The acquisition was financed primarily through borrowings under Kadant's revolving credit facility. Colleagues from KWS joined Kadant family. As of January 24, 2023, Kws Manufacturing Company, Ltd. reported a revenue of approximately $45 million for the trailing twelve months ended September 30, 2023.
Kadant Inc. (NYSE:KAI) acquired KWS Manufacturing Company, Ltd. on January 24, 2024. Kadant Inc. used some cash on hand to fund the transaction and borrowed $82 million from credit facility to fund the transaction. On a trailing 12-month basis, as of September 30, 2023, KWS Manufacturing Company, Ltd. generated approximately $8.9 million of adjusted EBITDA, which translates to an EBITDA multiple of 9.5x.
Kadant Inc. is a global supplier of technologies and engineered systems. The Company operates through three segments: Flow Control, Industrial Processing, and Material Handling. Flow Control segment include rotary sealing devices, steam systems, expansion joints, doctor systems, roll and fabric cleaning devices, and filtration and fiber recovery systems. Industrial Processing segment Equipment, machinery, and technologies used to recycle paper and paperboard and process timber for use in the packaging, tissue, wood products and alternative fuel industries, among others. The segment also provides fiber processing industries with simulation software and consulting services. Material Handling segment products include conveying and vibratory equipment and balers. In addition, the Company manufactures and sells biodegradable, absorbent granules used as carriers in agricultural applications and for oil and grease absorption.
KADANT INC. 
