CECO Environmental Corp. (CECE) recently announced the acquisition of HEE Environmental Engineering, a California-based, designing and manufacturing company. The acquisition is expected to significantly augment the company’s offerings in the air pollution control market. The announcement that came on Aug 14, has led to a share gain of about 1.8% so far.
HEE Environmental Engineering is a leading supplier in the air pollution control end-market, offering a diverse range of scrubbers, fans and other equipments for minimizing the toxic effects of hazardous chemical gases. The company, with an annual revenue generation capacity of $10 million, has an industry experience spanning over four decades. Its offerings include air pollution control scrubbers, biological scrubbers, FRP tanks, carbon scrubbers as well as fans certified by the Air Movement and Control Association (:AMCA) International, Inc.
HEE Environmental Engineering will perfectly complement CECO’s business, adding to its Duall Thermal Plastic scrubber unit. CECO, integrating the formers technology portfolio into its own, will be able to provide efficient yet comprehensive offerings to meet the rising need for the solutions to tackle the problem of air pollution across the globe. On the other hand, HEE Environmental Engineering is expected to benefit from CECO’s strong global presence in the domain.
The acquisition, which favorably places the combined entity to gain from the rising demand for fiberglass scrubbers, comes at an opportune moment. Moreover, stringent environmental regulations across the globe are compelling an increasing number of businesses to invest in the air pollution control products. This is definitely a positive for the company.
Prior to this, in 2013, the company had acquired Met-Pro Corporation for approximately $210 million, through which it attained a leading position in the air pollution control, product recovery and fluid handling technology markets across the globe.
CECO Environmental currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector are Metalico Inc. (MEA), Blount International Inc. (BLT) and Sharps Compliance Corp. (SMED). While Metalico and Blount International sport a Zacks Rank #1 (Strong Buy), Sharps Compliance has a Zacks Rank #2 (Buy).
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