CECO Environmental Corp. (NASDAQ:CECO) said on Aug. 23, 2023, that it completed the acquisition of Kemco Systems Co. LLC.
Kemco is a Florida-based company that specializes in the design, manufacturing and support of custom-engineered industrial water recycling and energy conservation solutions for the North American industrial markets.
The deal enhanced CECO's North American presence, extending the company's industrial water and wastewater treatment applications reach, as well as added new energy conservation and water recycling solutions.
Kemco generated full-year 2022 revenues of approximately $22 million. The financial details of the transaction were not disclosed.
"While this acquisition helps expand our North American presence in the water and wastewater treatment market, CECO also has the opportunity to introduce these water recycling and energy conservation solutions globally as a new offering, especially in regions we already serve where companies are seeking ways to reduce water usage, recycle their wastewater streams, and conserve energy,” said CEO Todd Gleason.
The company held $47.6 million in cash and equivalents as of June 30, 2023.
After the acquisition, the company has raised its full-year 2023 outlook for revenue and EBITDA.
CECO raised FY23 revenue outlook to $525 million from $500 million-$525 million previously and adjusted its EBITDA outlook to $55 million from $50 million-$55 million.
Price Action: CECO shares are trading higher by 4.38% at $15.01 on the last check on Wednesday.