Kadant: Acquisition of screen cylinder product line

WESTFORD, Mass. - Kadant Inc. (NYSE:KAI) announced that it has completed the acquisition of the screen cylinder product line from J&L Fiber Services, Inc. The acquisition of J&L Fiber Services’ screen cylinder product line further extends Kadant’s stock-preparation product offerings of screen cylinder products applied to recycled fiber lines, thick stock, broke, and other aggressive applications.
“The addition of J&L Fiber Services’ screen cylinders to our Stock-Preparation product line advances our strategic initiative to grow our parts and consumables business,” said Jonathan W. Painter, president and chief executive officer of Kadant Inc. “Screen cylinders are the most important consumable for stock preparation systems, and this bolt-on product line acquisition serves to deepen our product offerings and we believe will benefit our customers who require rugged and rebuildable screen cylinders for challenging fiber processing applications.
“The acquired screen cylinder product line has historical annual sales of approximately $10 million. Once we have integrated this business into our Stock-Preparation product line, we expect it to have adjusted EBITDA margins of approximately 20% in 2015.”
About Kadant
Kadant Inc. is a global supplier of high-value, critical components and engineered systems used in process industries worldwide. The Company’s products, technologies, and services play an integral role in enhancing process efficiency, optimizing energy utilization, and maximizing productivity in resource-intensive industries. Kadant is based in Westford, Massachusetts, with revenue of $344 million in 2013 and 1,800 employees in 18 countries worldwide. For more information, visit www.kadant.com.
The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about our expected future financial performance, our customers, demand for our products, and technologies. Our actual results may differ materially from these forward-looking statements as a result of various important factors, including those set forth under the heading “Risk Factors” in Kadant’s quarterly report on Form 10-Q for the period ended June 28, 2014. These include risks and uncertainties relating to our dependence on process industries; significance of sales and operation of manufacturing facilities in China; oriented strand board market and levels of residential construction activity; commodity and component price increases or shortages; dependence on certain suppliers; international sales and operations; our acquisition strategy; our internal growth strategy; fluctuations in currency exchange rates; competition; soundness of suppliers and customers; our effective tax rate; future restructurings; soundness of financial institutions; our debt obligations; restrictions in our credit agreement; reliance on third-party research; protection of patents and proprietary rights; failure of our information systems or breaches of data security; fluctuations in our share price; and anti-takeover provisions. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

Kadant Inc.
Investor contact:
Thomas M. O’Brien, 978-776-2000

Source: Kadant Inc.
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