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Thermon To Buy CCI Thermal Technologies For C$258 Mln In Cash - Quick Facts

Thermon Group Holdings, Inc. (THR), a provider of highly engineered thermal solutions, known as heat tracing, announced Wednesday that it has signed a definitive agreement to acquire CCI Thermal Technologies Inc. and certain related real estate assets in an all-cash transaction valued at C$258 million.

The acquisition is expected to be accretive to operating margins, free cash flow and GAAP earnings per share in Fiscal 2019.

Thermon expects to realize annualized run-rate cost synergies of approximately C$2.4 million during the fiscal year ending March 31, 2019. One-time transaction related costs during the fiscal year ending March 31, 2018 are estimated to be approximately $5.5 million, excluding financing fees.

CCI is a developer and producer of engineered heating and filtration solutions for industrial and hazardous area applications. Thermon said the acquisition supports its vision to be the world's leader in industrial process heating solutions by diversifying its product portfolio and end market exposure.

The current management team, led by President Bernie Moore, will continue to operate CCI from its Edmonton, Alberta headquarters, building upon its track record of profitability and growth.

Harold Roozen, Executive Chairman of CCI said, "We believe that Thermon is the perfect partner to help us build on our strong brands and long-standing customer relationships. The opportunity to leverage Thermon's global footprint to expand CCI's business into new geographies is exciting. The combination of the two companies will truly create a world leader in process heating solutions."

CCI has approximately 375 employees that support manufacturing and fabrication at five facilities in Canada and the United States. For its fiscal year ended July 31, 2017, CCI generated approximately C$95 million in total revenue, net income of C$15.9 million and Adjusted EBITDA of C$22.5 million.

The deal will be financed with cash on hand as well as a new senior secured debt facility.

by RTT Staff Writer

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