Adds Industrial Flow Control Leader to Nearly Double the Addressable Market Size
DALLAS, March 8, 2022 /PRNewswire/ — CECO Environmental Corp. (Nasdaq: CECE) (“CECO”)GRC, an industrial flow controller leader, is now part of, an internationally diversified, environmentally-focused industrial company. GRC, a part now of the Effox-Flextor-Mader, Inc. (“EFM”) joint venture, with Chartwell Investments Entrepreneur & Founder Capital, LLC (“Chief Capital”), was acquired. Lloyd AanonsenGRC’s president and CEO is now vice president and general manger of the damper/expansion joints platform for CECO.
GRC is a global leader in the engineering and manufacture of non-metallic rubber expansion joints and flow control products. It has a wide industrial customer base. As originally announced Jan. 10CECO now serves a sizeable market of 500 millionWith this acquisition, CECO will be able to expand its existing range of EFM dampers as well as metallic expansion joints to include rubber extension joints, ducting and industrial pinch joints. The acquisition will also increase CECO’s short-cycle sales and be highly accretive in terms of earnings and cash flow.
“We are thrilled to officially welcome GRC, and their strong leadership team, to our organization,” stated Todd GleasonCECO Environmental CEO. “With this acquisition we are moving further into the water, flood water and wastewater markets. This is a major area of CECO’s growth in this year. I look forward working with the GRC management to deliver turnkey, environmentally-friendly solutions that protect critical infrastructure, piping and flow controls for these markets.
ABOUT CECO ENVIRONMENTAL
CECO is a global leader for industrial fluid handling and air quality, serving a wide range of niche markets. CECO provides innovative technology and application expertise to help companies grow their businesses with safer, cleaner, and more cost-effective solutions that protect the environment. CECO is active in a variety of areas around the globe. It works to improve air quality and optimize the energy value chain. CECO also provides custom Engineered System for applications such as power generation, petrochemical process, refining, general industrial, midstream oil and gas, electric vehicle production and battery recycling. CECO is listed on Nasdaq as the ticker symbol “CECE”. Visit www.ceco.com for more information. www.cecoenviro.com.
ABOUT GRC
GRC is a global leader in the design, manufacturing, and sale of rubber flow control products and non-metallic expansion joints for a wide customer base. General Rubber LLC is the company’s name. It is well-known for its ability to engineer solutions for complex piping and ducting systems applications across multiple industries. The company was the first American manufacturer of rubber expansion joints to be ISO 9001 certified. For more information, please visit www.general-rubber.com.
ABOUT CHIEF CAPITAL
Chief Capital provides flexible private capital for entrepreneurs, family-owned companies and corporate carve-outs. Management owners partner with the firm to realize their visions. The firm provides long-term capital, resources, expertise and capital to accelerate growth and provide liquidity for future generations. Chief Capital makes each investment unique to meet the needs of its family partners and entrepreneurs. Chief Capital has over 40 years of experience and focuses on niche companies in the lower middle market. It specializes in healthcare services, business services, and niche manufacturing segments. Please visit www.chiefcap.com
SAFE HARBOR
All statements in this Press release, except statements of historical facts, and statements about management’s beliefs and expectations, constitute forward-looking statements that should be regarded as such. These statements are based upon management’s views regarding future events, business performance, and include statements about CECO’s expectations regarding integration of General Rubber LLC in EFM; the benefits from the acquisition of GRC and CECO’s expectations regarding its impact on CECO’s strategy for growth. To identify forward-looking statements, we use words like “believe”, “expect,”” “anticipate,”,”intends,”,”estimate,”,”forecast,” and similar expressions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. There are many risks and uncertainties associated with the acquisition of GRC. These could include the failure to realize the anticipated benefits of acquisition, the ability to successfully integrate acquired companies and realize the synergies that result from acquisitions, and a variety of other factors related to our business. Additional risks and uncertainties are discussed in “Part I Item 1A.” Risk Factors in the Annual Report on Form 10-K of the Company for the fiscal year ending December 31, 2020. These risks are beyond the control of management. If any of these uncertainties or risks materialize or if the assumptions prove wrong, actual results could differ in material aspects from what was anticipated. These forward-looking statements are not intended to be relied upon by investors. They represent our views as of the date they were made. Forward-looking statements only speak as of the date that they are made. Except as required by federal securities laws and the rules and regulations governing the Securities and Exchange Commission, forward-looking statements are not subject to revision or review.
Contact Investor:
Matthew Eckl, Chief Financial Officer
(888) 990-6670
[email protected]
News Media:
Kimberly Plaskett, Corporate Communications Director
(469) 928-109
[email protected]
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SOURCE CECO Environmental Corp.
