KAI - Kadant to Acquire Key Knife Inc. | Benzinga
WESTFORD, Mass., Dec. 28, 2023 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE:KAI) has entered into a definitive agreement to acquire Key Knife, Inc. and certain of its affiliates ("Key Knife") for approximately $156 million in cash, subject to certain customary adjustments. The acquisition is expected to close in early January 2024, subject to the satisfaction of customary closing conditions, and will be financed primarily through borrowings under Kadant's revolving credit facility.
Founded in 1986, Key Knife is a global supplier of engineered knife systems for custom chipping, planing, and flaking solutions for wood product industries. Its products enable wood processing mills to improve fiber recovery, product quality, and maximize production while lowering operating costs. The company is headquartered in Tualatin, Oregon with 141 employees located primarily in the United States and Canada. Key Knife's revenue for the trailing twelve months ended September 30, 2023 was approximately $65 million. Key Knife will become part of Kadant's Industrial Processing reporting segment.
"We have known and worked with Key Knife for over 20 years, and they are an excellent fit with Kadant," said Jeffrey L. Powell, president and chief executive officer of Kadant. "With its strong aftermarket business and focus on providing highly engineered knife systems, Key Knife will broaden our product portfolio and strengthen our position in wood processing industries. We look forward to welcoming the employees of Key Knife to the Kadant family."
Christopher W. McDonald, president and chief executive officer of Key Knife, commented, "We are proud of the strong brand Key Knife has built. As a process industry leader with a culture and values similar to ours, we believe Kadant ...