CECO Environmental Corp.(CECE) recently closed the acquisition of China-based Jiangyin Zhongli Industrial Technology Co., Ltd. Jiangyin Zhongli is a leading designer and manufacturer of technology solutions including power industry damper, diverter and ball mill systems. The financial terms of the deal have been kept under wraps.
Jiangyin Zhongli holds expertise in providing advanced technology solutions for the energy sector in China and Russia. Since 2004, the company has been offering its services to diverse customers ranging from established power plants to engineering, procurement and construction (“EPC”) companies and associated end-users in the region. The company generates revenues of about $28 million on an annual basis.
The definitive purchase agreement for the aforementioned acquisition was inked by CECO Environmental in November. Jiangyin Zhongli business will be integrated with the company’s Effox business in North America under its energy segment. The acquisition is expected to be significantly beneficial for CECO Environmental, enhancing its presence in the Chinese market, and making it a leading player in the global power industry. The company further expects the acquisition to boost its distribution channel, manufacturing footprint and the customer coverage in China.
CECO Environmental has been pursuing the strategy of accretive acquisitions to foster growth. The company has completed the acquisition of Emtrol LLC, a fluid catalytic cracking (“FCC”) & industrial cyclone technology provider, in the recent past. Prior to this, in August, the company acquired two companies, HEE Environmental Engineering and Met-Pro Corporation, to strengthen its position in the environmental industry. Also, the company has been gaining from the strength of its business in China. This acquisition will further pave the way for its progress in the Asian markets.
CECO Environmental presently carries a Zacks Ranks #2 (Buy). Other stocks that can be considered at the moment include Progressive Waste Solutions Ltd. (BIN), Perma-Fix Environmental Services Inc. (PESI) and PMFG, Inc. (PMFG). While both Progressive Waste Solutions and Perma-Fix Environmental Services sport a Zacks Rank #1 (Strong Buy), PMFG has the same Zacks Rank as CECO Environmental.
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