Under the agreement terms, GRC is to be acquired by Effox-Flextor-Mader, Inc. (EFM), a joint venture between CECO and Chartwell Investments Entrepreneur & Founder Capital, LLC (Chief Capital) formed in July 2020.
GRC is involved in the engineering and manufacturing of non-metallic (rubber) expansion joints and flow control products with a diversified industrial customer base.
With the acquisition, CECO expects to expand its existing offering of EFM dampers and metallic expansion joints to include rubber expansion joints, ducting expansion joints, and industrial pinch and duck bill valves.
The addition of GRC expands the addressable market size for CECO from $200 million to $500 million.
CECO anticipates the transaction to close by April 2022 and finance it with a mix of cash, debt, and equity from the JV.
CECO held cash and equivalents of $34.5 million as of September 30, 2021.
Lloyd Aanonsen, president and CEO, GRC, will be joining CECO as its new VP and general manager of the newly formed damper and expansion joints platform.
Price Action: CECE shares are trading lower by 1.61% at $6.11 on the last check Monday.
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