Upcoming AWS Coverage on Flowserve Post-Earnings Results
LONDON, UK / ACCESSWIRE / June 2, 2017 / Active Wall St. blog coverage looks at the headline from Kadant Inc. (NYSE: KAI) as the Company announced on May 30, 2017, that it has entered into a definitive agreement to acquire the forest products business of NII FPG Company for $173 million in cash, subject to a post-closing adjustment. The Company additionally announced that it has increased the revolving credit facility to $300 million from $200 million and plans to finance the transaction through borrowings under the revolving credit facility. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.
One of Kadant's competitors within the Diversified Machinery space, Flowserve Corporation (NYSE: FLS), reported on May 01, 2017, its financial results for Q1 2017 which ended on March 31, 2017. AWS will be initiating a research report on Flowserve in the coming days.
Today, AWS is promoting its blog coverage on KAI; touching on FLS. Get all of our free blog coverage and more by clicking on the link below: http://www.activewallst.com/register/.
The Announcement
Kadant views this acquisition of the forest products business of NII FPG as an extension of presence in the forest products industry. The Company expects the business to be complementary to its existing wood processing product line. Kadant is a global supplier of high-value, critical components, and engineered systems used in process industries across the world. Kadant currently operates from Westford, Massachusetts, with 2,000 employees in 18 countries worldwide.
NII FPG is a leading designer and manufacturer of equipment used by sawmills, veneer mills, and other manufacturers in the forest products industry. NII FPG is additionally involved in design and manufacturing of harvesting equipment, used in cutting, gathering, and removing timber from forest plantations. The Company is a leader in the respective segment with a history of stable earnings, strong parts, and a consumables business. It holds a reputation as a premium manufacturer of products that have a high impact on consumers' operations. The acquisition is set to complement Kadant's existing strategic plan to increase its aftermarket revenue as more than 50% of NII FPG business comes from parts and consumables.
The forest products business of NII FPG includes two primary manufacturing facilities and about 275 employees worldwide with net revenues of approximately $81 million for the full-year ended December 31, 2016.
Stock Repurchase
On May 17, 2017, Kadant announced that its Board of Directors has authorized the repurchase of up to an additional $20 million of its equity securities effective May 17, 2017, through May 18, 2018. Through May 17, 2017, under the existing $20 million authorization that is set to expire on May 18, 2018, the Company has not repurchased any shares of its common stock.
North America Expansion
Kadant announced on January 26, 2017, that it has appointed Bulk Handling Systems as the exclusive distributor of high-performance balers to material recycling facilities in the US and Canada. Kadant was awarded its first US order for a channel baler through BHS. Under the order, the Company had to install a channel baler at the regional waste recovery facility in Monterey, California.
Kadant announced that its first US baler will be a part of the advanced materials recovery facility BHS is constructing in Monterey. This step outlined an important one in Kadant's strategy to boost revenue synergies post the acquisition of PAAL Group done on April 04, 2016. Kadant acquired the leading European manufacturer of horizontal balers used to process both recyclable materials, i.e. paper and plastics, and non-recyclable materials such as treated household/commercial waste and agricultural products. Kadant acquired the PAAL Group for about $58 million and expects PAAL's business to be complementary to its recycling and waste management portfolio.
Stock Performance
On Thursday, June 01, 2017, the stock closed the trading session at $79.35, climbing 3.25% from its previous closing price of $76.85. A total volume of 266.66 thousand shares have exchanged hands, which was higher than the 3-month average volume of 51.79 thousand shares. Kadant's stock price soared 23.98% in the last month, 31.92% in the past three months, and 59.05% in the previous twelve months. Furthermore, on a year to date basis, the stock surged 29.66%. The stock is trading at a PE ratio of 26.02 and has a dividend yield of 1.06%. At Thursday's closing price, the stock's net capitalization stands at $872.06 million.
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