Business
Cemtrex to Acquire Mechanical Contracting and Steel Fabrication Company to Expand AIS Industrial Segment
Highly Synergistic Acquisition Adds Approximately $11 Million in Revenue, Positive Cash Flow and Expands Capabilities and Customers into New Markets.
About this update from Cemtrex Inc.
[{"type":"text","content":"Highly Synergistic Acquisition Adds Approximately $11 Million in Revenue, Positive Cash Flow and Expands Capabilities and Customers into New Markets. Transaction Expected to Close in June 2023 and Be Accretive in Fourth Quarter of Fiscal Year 2023\nBrooklyn, NY, June 08, 2023 (GLOBE NEWSWIRE) -- - Cemtrex Inc. (NASDAQ: CETX, CETXP), an advanced security technology and industrial services company, today announced that it has entered into a definitive agreement to acquire a leading service contractor and steel fabricator that specializes in industrial and water treatment markets. Founded in 1988 in Central Pennsylvania, the industrial service contractor is focused on steel fabrication and contracting primarily to the commercial and industrial water treatment industry, as well as other service industries. The company provides the water treatment industry with a variety of fabricated vessels and equipment including ASME pressure vessels, heat exchangers, mix tanks, reactors, and other specialized fabricated equipment. Additionally, the contracting team assists with installation and service of fabricated items. The company has over 33,000 square feet of manufacturing floor space in its facility and an experienced staff of fabricators, welders, and field mechanics. “This acquisition of an established contractor in a growth market is highly synergistic with our Advanced Industrial Services (“AIS”) subsidiary,” said Saagar Govil, Cemtrex Chairman and CEO. “We will build on the company’s achievements, enabling us to expand our fabrication capabilities into new markets, and our customer base into government and industrial verticals, as well as expanded geographies, the company is not servicing today. As a result of aging infrastructure, increased water scarcity, and stringent EPA rules, the demand for water treatment systems and service is expected to grow into the future. “The acquisition brings over $11.6 million in annual revenue and approximately $775K in adjusted EBITDA, when averaged over the last four years, with its client list of commercial and industrial facilities, a seasoned team and extensive manufacturing equipment. We expect to add significant value beyond the immediately accretive revenue stream and believe the acquisition will continue to drive future growth. This also represents the first acquisition as part of our Indus...