DALLAS, April 3, 2023 /PRNewswire/ -- CECO Environmental Corp. (Nasdaq: CECO) ("CECO"), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment, and industrial equipment, today announced it has completed the acquisition of Transcend Solutions, LLC ("Transcend"), a Houston-based process filtration solution design and manufacturing company with applications in hydrocarbon and chemical processing.
The addition of Transcend to CECO's Separation and Filtration business platform advances CECO's capability to offer customers around the world a turnkey performance-enhancing engineered solution for process fluid separation and filtration in a wide range of high-performance applications. Transcend is the second acquisition for CECO in 2023, following the previously announced deal for U.K.-based Wakefield Acoustics Ltd. in January 2023 and four transactions in 2022, continuing CECO's steady execution of its programmatic M&A strategy launched in early 2022.
"Transcend Solutions has been a key supplier-partner for CECO. We have a great relationship with the company and its management team, and they are already aligned with our Separation-Filtration strategy," said Todd Gleason, Chief Executive Officer, CECO Environmental Corp. "Transcend is a well-managed company led by a very capable team of filtration and separation industry veterans that brings advanced engineering talent with a strong understanding of end-user needs, giving us in-house capability in process design and filter element design."
Added Gleason, "Transcend checks all the boxes for CECO when we evaluate strategic acquisitions and where to deploy our capital. Transcend provides differentiated, high-value advanced solutions to a broad set of markets and applications. The company has the potential to double revenue in a three-year period when plugged into the existing CECO network of global customers and locations. Transcend improves our short-cycle and long-cycle mix and has highly accretive operating margins. And finally, we have completed this transaction with very attractive pricing based on both a trailing and forward basis."
"We see many opportunities to expand our reach into midstream oil and gas, LNG, hydrocarbon processing, and chemical processing applications, with the greatest opportunity for growth in natural gas and green energy markets. The acquisition fits perfectly within our strategy to enable sustainable solutions and growth in the energy transition and renewable energy markets while pursuing higher margin aftermarket service opportunities at facilities around the globe," said David Taylor, General Manager, CECO's Separation and Filtration platform.
Transcend's current President and Chief Executive Officer, Matt Thundyil, Ph.D., will remain with the company as General Manager under CECO's Separation and Filtration platform to lead the business and drive strategic growth. "CECO provides the balance sheet and customer access to bring Transcend's technology and people to bear on solving critical contamination challenges in the process industry. Working even more closely together, I am confident in our ability to accelerate growth," said Dr. Thundyil.
ABOUT CECO ENVIRONMENTAL
CECO Environmental is a leading environmentally focused, diversified industrial company, serving the broad landscape of industrial air, industrial water and energy transition markets globally providing innovative solutions and application expertise. CECO helps companies grow their business with safe, clean, and more efficient solutions that help protect people, the environment and industrial equipment. CECO solutions improve air and water quality, optimize emissions management, and increase energy efficiency for highly engineered applications in power generation, midstream and downstream hydrocarbon processing and transport, electric vehicle production, polysilicon fabrication, semiconductor and electronics, battery production and recycling, specialty metals and steel production, beverage can, and water/wastewater treatment and a wide range of other industrial end markets. CECO is listed on Nasdaq under the ticker symbol "CECO." Incorporated in 1966, CECO's global headquarters is in Dallas, Texas. For more information, please visit www.cecoenviro.com.
ABOUT TRANSCEND SOLUTIONS, LLC
Transcend is a leading manufacturer of custom filtration and separation solutions that optimize customer processes. The company combines separations, process engineering and operating expertise to develop root cause solutions for endemic process issues. In addition, Transcend develops technologies that can improve fluid quality, extend online life, improve operator interface and operability, and reduce disposal costs. The company earned ISO 9001:2015 certification in 2020. For more information, visit http://trnscnd.com/.
Any statements contained in this Press Release, other than statements of historical fact, including statements about management's beliefs and expectations, are forward-looking statements and should be evaluated as such. These statements are made on the basis of management's views and assumptions regarding future events and business performance and include, but are not limited to, statements about CECO's expectations regarding the integration of Transcend Solutions, LLC, into CECO; the benefits of the acquisition of Transcend Solutions, LLC, and the expectations regarding the transaction's impact on CECO's strategic growth plan. We use words such as "believe," "expect," "anticipate," "intends," "estimate," "forecast," "project," "will," "plan," "should" and similar expressions to identify forward-looking statements. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Potential risks and uncertainties surrounding the acquisition of Transcend Solutions, LLC, that could cause actual results to differ materially include risks regarding the achievement of the anticipated benefits of the acquisition, our ability to successfully integrate acquired businesses and realize the synergies from acquisitions, as well as a number of factors related to our business, including economic and financial market conditions generally and economic conditions in CECO's service areas; the ability to expand operations in both new and existing markets; unpredictability and severity of catastrophic events, including cyber-security threats, acts of terrorism or outbreak of war or hostilities or public health crises, such as uncertainties regarding the extent and duration of impacts of matters associated with the novel coronavirus ("COVID-19"); and the effect of competition in the air quality and fluid handling industries. Additional risks and uncertainties are discussed under "Part I – Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Many of these risks are beyond management's ability to control or predict. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated. Investors are cautioned not to place undue reliance on such forward-looking statements as they speak only to our views as of the date the statement is made. Furthermore, forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the Securities and Exchange Commission, we undertake no obligation to update or review any forward-looking statements, whether as a result of new information, future events or otherwise.
Peter Johansson, Chief Financial and Strategy Officer
Kimberly Plaskett, Corporate Communications Director
SOURCE CECO Environmental Corp.