Kadant to acquire Syntron Material Handling for approximately $179M in cash
Kadant has entered into a definitive agreement to acquire Syntron Material Handling Group, LLC and certain of its affiliates from entities affiliated with Levine Leichtman Capital Partners for approximately $179M in cash, subject to certain customary adjustments. Syntron is a leading provider of material handling equipment and systems to various process industries, including mining, aggregates, food processing, packaging, and pulp and paper. The company manufactures conveying and vibratory equipment at its facilities in Tupelo, Mississippi and Changshu, China under the Link-Belt and Syntron brands. Syntron has approximately 250 employees worldwide and its trailing twelve months revenue ended October 31, 2018 was approximately $89M. Kadant also announced that prior to entering into the purchase agreement to acquire Syntron, it entered into a limited consent under the company's existing credit agreement, pursuant to which lenders under the credit agreement agreed to limit certain funding conditions under the agreement with respect to loans the company may request to fund a portion of its acquisition of Syntron. The acquisition is expected to close in January 2019, subject to the satisfaction of customary closing conditions. Houlihan Lokey served as the exclusive financial adviser to Levine Leichtman Capital Partners.