CECO Environmental to acquire Lindon’s Profire Energy for $125M

Dallas-based CECO Environmental Corp., an environmentally focused, diversified industrial company, has agreed to acquire Profire Energy Inc. of Lindon for $125 million in an all-cash transaction. Founded in 2002, Profire has offices in Lindon; Victoria, Texas; Midland-Odessa, Texas; Homer, Pennsylvania; Greeley, Colorado; Millersburg, Ohio; and Acheson, Alberta, Canada.

Profire Energy is a technology company providing solutions in burner management technology and combustion control systems that provide mission-critical combustion automation and control solutions and services to improve environmental efficiency, safety and reliability for industrial thermal applications globally. Profire estimates its 2024 sales will be greater than $60 million.

“We are extremely pleased to announce this transaction with CECO which is a testament to the value that has been created for Profire employees, customers and shareholders,” said Cameron Tidball and Ryan Oviatt, co-CEOs of Profire, in a statement. “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.”

“I am excited to announce the acquisition of Profire and we look forward to welcoming their tremendous organization to our portfolio of leading solution companies,” said Todd Gleason, CECO’s CEO. “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. We are also confident that the increased scale and combined corporate organizations will generate meaningful efficiencies and synergies.”

Under the terms of the agreement, a subsidiary of CECO will commence a tender offer to acquire all issued and outstanding shares of Profire common stock at a price of $2.55 per share in cash. The transaction, which has been unanimously approved by Profire’s board of directors, implies an equity value of approximately $125 million and a total enterprise value for Profire of approximately $108 million. The price represents a 46.5 percent premium over Profire’s closing share price of $1.74 on Oct. 25.

Upon completion of the transaction, Profire will become a wholly owned subsidiary of CECO and shares of Profire’s common stock will no longer be listed on any public market. The parties anticipate that the combination will be completed in the first quarter of 2025.