## Profire Energy (PFIE) Skyrockets 46% on CECO Environmental Acquisition Deal
Profire Energy, Inc. (PFIE) shares experienced a dramatic surge on Tuesday, following the announcement of a definitive agreement for CECO Environmental Corp. (CECO) to acquire Profire in an all-cash transaction. This deal values Profire’s equity at approximately $125 million, with an enterprise value of around $108 million.
The acquisition price of $2.55 per share represents a substantial premium – 46.5% above Profire’s closing share price on October 25, 2024, and 60.3% higher than its 30-day volume-weighted average price as of that date. The offer will remain open for an initial period of 20 business days, with the potential for extensions as required.
The transaction, unanimously approved by Profire’s Board of Directors, signals a significant step forward for both companies. Following the closing, anticipated in the first quarter of 2025, Profire’s common stock will be delisted from public markets.
Profire projects sales exceeding $60 million in 2024, accompanied by adjusted EBITDA margins of approximately 20%. This robust financial performance, combined with CECO’s expertise in acquiring and investing in companies for growth, promises significant value creation for all stakeholders.
“With an installed base approaching 100,000 burner management systems and a growing industrial market product offering, we look forward to accelerating their global market expansion and introducing their high-efficiency solutions to more customers in industrial air and water,” stated Todd Gleason, CECO’s Chief Executive Officer.
Cameron Tidball and Ryan Oviatt, co-CEOs of Profire, echoed this sentiment: “The combination of our well-established leadership in niche energy and industrial mission critical applications with CECO’s proven track record of acquiring and investing in companies to enhance their growth and create scale will unlock even more value for all constituents.”
As of September 30, 2024, CECO’s cash and cash equivalents stood at $38.9 million, demonstrating their financial capacity to execute this acquisition.
Market Reaction:
Reflecting the positive market sentiment surrounding the deal, PFIE shares soared by 46.8% to reach $2.51 at the last check on Tuesday. This dramatic increase reflects the market’s confidence in the strategic benefits of the acquisition for both companies.
This acquisition has the potential to create significant value for shareholders of both Profire and CECO, as well as for the broader industrial market. By combining their strengths, the two companies are poised to achieve greater market penetration and innovation in the industrial air and water sectors.
