Kadant(US:KAI) Yahoo Finance·2026-02-04 13:48Core Viewpoint - Kadant is acquiring voestalpine BÖHLER Profil for approximately €157 million, which is expected to enhance its parts and consumables business while facing short-term dilution in 2026 due to inventory adjustments [6][12][4]. Acquisition Details - The acquisition price is about €157 million, with BÖHLER Profil generating €52 million in revenue and €15.6 million in adjusted EBITDA for fiscal year 2025, implying an EBITDA multiple of around 10x, which can be reduced to approximately 8.5x when accounting for tax benefits [6][7]. - Kadant plans to fund the acquisition primarily through borrowings under its European revolving credit facility, anticipating a leverage ratio just above 2 and a borrowing rate of approximately 3.5% in 2026 [8][6]. Business Operations - BÖHLER Profil, based in Bruckbach, Austria, has over 150 years of experience in manufacturing high-quality precision components for technically challenging applications, supported by patented processes [3][5]. - Approximately 45% of BÖHLER's sales are to Kadant, which will be treated as intercompany revenue post-acquisition, leading to a reduction in reported revenue but expected improvements in gross margin and EBITDA margins [10][4]. Market Position and Growth - BÖHLER Profil serves a diverse range of end markets, including aviation, automotive, and industrial machinery, with no single market representing a significant portion of revenue [14]. - The company has experienced growth in the 8% range over the last two years and about 10% over the past five years, although Kadant has modeled the business conservatively without assuming high-single-digit growth [15]. Strategic Fit - The acquisition aligns with Kadant's strategic focus on parts and consumables, reducing sourcing risk and strengthening its aftermarket capabilities [5][2]. - Kadant intends to integrate BÖHLER Profil into its global direct sales network and explore opportunities to expand sales beyond Kadant's divisions [16].