CINCINNATI, Nov. 5, 2014 /PRNewswire/ -- CECO Environmental Corp. (NasdaqGM: CECE), a leading global environmental technology company focused on critical solutions in the air pollution control (APC), energy and fluid handling and filtration segments, today announced that it has signed a definitive purchase agreement to acquire substantially all of the assets of Jiangyin Zhongli Industrial Technology Company Ltd ("Zhongli"), a leader in the design and manufacture of power industry flue gas dampers and ball mill systems in China. The closing of the acquisition is subject to customary Chinese Government approvals, which is expected to be received around December 15, 2014. Terms of the transaction were not disclosed.
Founded in 2004, Zhongli is headquartered in Jiangyin City, China, and has close to 200 employees and is a provider of key technology solutions to traditional power plants, related end-users and engineering, procurement and construction (EPC) firms in China and Russia. Zhongli's annual revenues are approximately $28 million and when combined with CECO's current China operations, will have significant operating leverage and revenue opportunities. Zhongli's management team will remain in place with founder and President, Shen Guoxiang, continuing to lead the business and reporting to Mr. Brent Becker, CECO's President of Asia.
"The acquisition of Zhongli is an excellent fit for CECO and strengthens our global capabilities," commented Jeff Lang, CECO's Chief Executive Officer. "Zhongli's strong technology and product portfolio will materially enhance our position in the global power generation market and significantly advances our efforts in China. Zhongli's technology is synergistic with our Effox and Aarding product lines and the combined portfolio will be leveraged across all regions. I am confident that the addition of Zhongli to our Energy Technology Segment will enable us to provide customers with a more globally competitive solution and open up many more opportunities for CECO. I am delighted to welcome the Zhongli team to CECO and look forward to working with them to capture new markets and customers as we continue to grow our global energy business."
Brent Becker, CECO's President of Asia, also commented, "This acquisition continues our strategy to expand our global business footprint in our key sectors and creates increasing scale in our China operations. Zhongli will enable us to participate in a growing power generation market that is expected to see continued growth and expansion in China as well as the broader Asian market."
ABOUT CECO ENVIRONMENTAL
CECO Environmental is a leading global environmental technology company focused on critical solutions in the air pollution control (APC), energy and fluid handling and filtration industries. Through its well-known brands, CECO provides a wide spectrum of products and services including dampers & diverters, cyclonic technology, thermal oxidizers, filtration systems, scrubbers, fluid handling equipment and plant engineered services and engineered design build fabrication. These products play a vital role in helping companies achieve exacting production standards, meeting increasing plant needs and stringent emissions control regulations around the globe. CECO globally serves the broadest range of markets and industries including power, municipalities, chemical, industrial manufacturing, refining, petrochemical, metals, minerals & mining, hospitals and universities. CECO is focused on building long-term shareholder value by bringing its unique technology, portfolio and operational excellence to strategic key growth markets around the world, while maintaining the highest standards of employee development, project execution and safety leadership. CECO is listed on NASDAQ under the ticker symbol "CECE" and is a member company of the Russell 2000 Index. For more information on CECO Environmental, please visit the company's website at http://www.cecoenviro.com.
Jeff Lang, Chief Executive Officer
Ed Prajzner, Chief Financial Officer
The Blueshirt Group
Phone: (415) 489-2198
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to certain risks, uncertainties and assumptions. These risks and uncertainties, which are more fully described in CECO's Annual and Quarterly Reports filed with the Securities and Exchange Commission, include changes in market conditions in the industries in which the Company operates. Should one or more of these risks or uncertainties materialize, or should the assumption prove incorrect, actual results may vary in material aspects from those currently anticipated.
SOURCE CECO Environmental Corp.