Cemtrex Inc., a diversified industrial and manufacturing leader, entered into a Letter of Intent on October 28th, 2015, to acquire a leading air filtration solutions provider (Target) based in the US.
The Target is a provider of clean air products and services for industrial, commercial, and municipal facilities in the western United States. The company has been a leader in designing and implementing technology for advanced air quality systems for over 25 years.
Cemtrex's CEO, Saagar Govil, commented, "We are extremely pleased about this acquisition as it will greatly enhance our domestic competitiveness in our industrial filtration business. California typically sets the standard when it comes to environmental practices so acquiring a leader in this market significantly advances our long term strategy in this business. Additionally, we see a lot of room for value addition and cross-selling from our existing filtration and monitoring businesses."
The Target had revenues of approximately $5M and a normalized EBITDA of approximately $.5M in 2014. The purchase price of approximately $1.55M, will be paid with $.4M in cash, $.95M in debt, and $.2M in stock. The company expects the acquisition to close in approximately 90 days. Due to confidentiality reasons further details regarding the Target or the transaction are not available at this time.
Mr. Govil continued, "This is Cemtrex's second announced acquisition in 2015 and fits into the company's strategy of growing both organically as well as through acquisitions. As I always tell prospective investors, Cemtrex is constantly evaluating and negotiating acquisition opportunities, and as the right opportunities present themselves, the Company pursues them aggressively. The company's previously announced acquisition is still pending and is expected to close soon."