The merger, which is subject to customary closing conditions including the approval of the stockholders of both CECO Environmental and PMFG and antitrust approval, is expected to close in the third quarter of 2015. The boards of both companies have unanimously approved the transaction.
CECO Environmental CEO Jeff Lang said: “This is a major step in the evolution of CECO and we are very excited to bring PMFG into the CECO family. PMFG’s product portfolio is highly complementary to our existing businesses, while enabling us to expand into a number of new applications and growth markets. Not only do we see compelling potential growth opportunities, but believe by combining PMFG’s operations into our own, there are significant opportunities for cost reductions that will expand margins and drive returns for our shareholders.”
Peter Burlage, chairman and CEO of PMFG, said: “We are excited to be joining forces with CECO and believe the scale and synergies generated by this combination are superior to what could be captured by either organization independently.”
“We have admired PMFG’s product portfolio and gross margins for a number of years and spent considerable time analyzing a potential combination. We believe there are significant strategic and financial benefits to the transaction. This is a unique situation and there are very few opportunities to find companies with such a complementary mix of technologies, customers and geographies,” added CECO Environmental chairman Jason DeZwirek.