Porvair has acquired the goodwill, business and trading assets of Keystone Filter, a division of CECO Environmental Corp, for cash.
Keystone designs and manufactures a range of filter cartridges and housings for the food and beverage, drinking water, and chemical process markets in the US. The company reported revenue of approximately US$4 million in the year ended 31 December 2017.
As part of the acquisition, the group has entered into a transition services agreement (TSA) with CECO to transfer the business to its Ashland plant, in Virginia, over the next few months.
Keystone will be integrated into the group's Aerospace & Industrial division. The business is expected to be earnings accretive once the transfer is completed.
Porvair CEO, Ben Stocks, commented: "The acquisition of Keystone increases the Aerospace & Industrial division's presence in the US, broadening its markets and providing a range of cross-selling opportunities.
“Keystone brings sales expertise, distribution and a broad customer base for whom Porvair's wider product range will be attractive."
Porvair is a group of specialist filtration, separation and environmental technologies businesses. Its products are used in a range of niche filtration and separation markets.
In January 2018, the group released preliminary results for the year ended 30 November 2017. The report showed revenue of £116.4 million (2016: £109.4 million), up 6% compared to the previous period.
Profit before tax increased 16% in this period to a record £11.7 million (2016: £10.1 million). The group also revealed 11% revenue growth at constant currency, stripping out large projects.
The group has started 2018 with a healthy order position and is trading well,” Stocks commented. In the statement, he said that investments in capacity and manufacturing capabilities have continued throughout 2017 and will allow for further growth.
“JG Finneran Associates Inc., acquired in April 2017, is performing ahead of our expectations and Rohasys BV, acquired in December 2017, is a good strategic fit and has started well. The group remains in a strong financial position, and a promising start has been made to the current financial year,” he concluded.
From the 2018 financial year, Porvair is organised into three divisions: Aerospace & Industrial; Laboratory; and Metal Melt Quality.
