Kadant acquires Clyde Industries for $175 million in cash deal

WESTFORD, Mass. - Kadant Inc. (NYSE:KAI), a $3.52 billion market cap industrial processing technology company currently trading near its 52-week low, has completed the acquisition of Clyde Industries Holdings, Inc. and its affiliates for $175 million in cash, subject to customary adjustments, the company announced Tuesday.

The transaction was primarily financed through borrowings under Kadant’s revolving credit facility. According to InvestingPro data, Kadant maintains a healthy balance sheet with a current ratio of 2.38 and operates with moderate debt levels. Clyde Industries, founded in 1924, specializes in boiler efficiency and cleaning system technologies for energy, pulp and paper, and general industrial markets.

Atlanta-based Clyde Industries, which reported revenue of $92 million for the fiscal year ended February 28, 2025, employs approximately 400 people across operations in Brazil, China, Indonesia, Finland, and Canada. The acquired company will be integrated into Kadant’s Industrial Processing reporting segment.

"Clyde Industries shares our commitment to driving Sustainable Industrial Processing, and this acquisition supports our strategic goals for expanding our industrial processing offerings to adjacent markets," said Jeffrey L. Powell, president and chief executive officer of Kadant.

Brent Beachy, chief executive officer of Clyde Industries, stated that joining Kadant presents "an exciting growth opportunity for our team and our customers."

Kadant will hold a conference call and webcast on Thursday, October 9, to discuss the acquisition.

Based in Westford, Massachusetts, Kadant supplies technologies and engineered systems for industrial processing, with approximately 3,900 employees across 22 countries. The company has demonstrated strong financial performance with $1.02 billion in revenue over the last twelve months and maintains a solid dividend track record. InvestingPro analysis reveals 10+ additional key insights about Kadant’s financial health and growth prospects, available to subscribers.

This article is based on information from a company press release.

In other recent news, Kadant Inc. reported impressive second-quarter 2025 financial results, surpassing both earnings and revenue expectations. The company achieved an adjusted earnings per share of $2.31, which was significantly higher than the anticipated $1.94, representing a 19.07% surprise. Revenue for the quarter reached $255.3 million, exceeding forecasts by 3.73%. Additionally, Kadant announced an increase in its revolving credit facility to $750 million, with an extension of the maturity date to September 26, 2030, as part of an amendment to its credit agreement with Citizens Bank and other financial institutions. This amendment also introduced Australian Dollars as a foreign currency option for borrowings. Furthermore, Kadant’s Board of Directors declared a quarterly cash dividend of $0.34 per share, payable on November 6, 2025, to shareholders of record as of October 9, 2025. These developments reflect the company’s ongoing financial strategies and shareholder return initiatives.

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