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CECO Environmental Announces Joint Venture Between Its Effox-Flextor Business And Mader Machine Co., A Portfolio Company Of CHIEF Capital, To Strategically Align For Growth And Efficiencies.
DALLAS, Aug. 4, 2020 /PRNewswire/ -- CECO Environmental (NASDAQ CECE), a leading global air quality and fluid handling technology company and Mader Machine
About this update from Ceco Environmental Corp.
[{"type":"text","content":"DALLAS, Aug. 4, 2020 /PRNewswire/ -- CECO Environmental (NASDAQ CECE), a leading global air quality and fluid handling technology company and Mader Machine Co. (Mader), announced today they have entered into an agreement to create a Joint Venture (JV) combining CECO's Effox-Flextor damper business with Mader's damper business, leveraging the synergies and complementary strengths from each business. The JV will benefit both companies by going to market with a more robust portfolio while enhancing the cost structure as a combined organization. \n\n \n \n \n \n \n \n\n \nUnder the terms of the joint venture, CECO will hold 70 percent of the equity, consolidate the financial reporting, maintain 2 of 4 board seats, and receive an annual fee for providing administrative services to the JV. L. James Zeager, CEO of Mader, will lead the combined company driving its growth and cost actions and ensuring a streamlined integrated business. Mader is a portfolio company of Chartwell Investments Entrepreneur & Founder Capital (\"CHIEF Capital\").\n\"This newly formed JV provides solid leadership within the damper business, as-well as expanded strategies and optionality,\" stated Matt Eckl, CFO of CECO Environmental.\n\"From a strategic perspective, the combined strengths and brand reputations of both Effox-Flextor and Mader will provide new opportunities to enable expansion into various markets and sharpen our focus in other strategic areas within clean air,\" says L. James Zeager, CEO of Mader. \"The JV will also produce important cost synergies to improve profitability as we navigate the challenging markets and uncertain environment.\"\nDaniel Duncan, President of Energy Solutions at CECO Environmental added, \"the combination of these two businesses will give their respective customers the support of an expanded and experienced team as well as new product and service options.\"\nAbout CECO:\nCECO Environmental is a global leader in air quality and fluid handling serving the energy, industrial and other niche markets. Providing innovative technology and application expertise, CECO helps companies grow their business with safe, clean and more efficient solutions that help protect our shared environment. In regions around the world, CECO works to improve air quality, optimize the energy value chain and provide custom engineered solutions for ap...