Kadant Inc. has recently completed the acquisition of Dynamic Sealing Technologies LLC and affiliates ("DSTI") for approximately $55 million in cash. This acquisition was financed through borrowings under Kadant's revolving credit facility.
DSTI, a leader in engineered fluid sealing and transfer solutions for rotating applications, had revenue of approximately $25 million for the trailing twelve months ended March 31, 2024. The company specializes in the design, manufacture, and integration of fluid rotary unions, electrical slip rings, and value-added products used to transfer hydraulic fluid, water, air, and other liquids and gases in various industrial processes. DSTI serves customers in industries including defense, energy, medical, and factory automation.
Upon completion of the acquisition, DSTI will become part of Kadant’s flow control reporting segment. Kadant's President and CEO, Jeffrey L. Powell, stated that the acquisition serves to extend their presence in a number of adjacent industries and that the company’s custom engineered rotary unions and related products are highly complementary to Kadant's existing product portfolio.
Jeffrey S. Meister, President of DSTI, expressed excitement about continuing their work as part of Kadant, emphasizing their commitment to delivering exceptional products built by exceptional people.
Kadant will hold a conference call and webcast on Tuesday, June 4, 2024, at 11:00 a.m. Eastern Time to discuss the acquisition. A replay of the webcast presentation will be available on the company’s website through July 5, 2024.
Kadant Inc. is a global supplier of technologies and engineered systems that drive sustainable industrial processing, with approximately 3,500 employees in 20 countries worldwide. Following these announcements, the company's shares moved -2.4%, and are now trading at a price of $279.17. For the full picture, make sure to review Kadant's 8-K report.
