Kadant Inc. [NYSE: KAI] disclosed Thursday that it has decided to purchase Joh. Clouth GmbH & Co. KG and its affiliates (Clouth). The firm has revealed that it will spend nearly 78 million Euros in cash, dependent on certain customary adjustments. This purchase of Clouth will combine two international market leaders to build an even stronger collection of doctor blades used in creping, scraping, cleaning, and coating applications.
Since its inception in 1874 in Germany, it has 205 employees based in Germany and Poland. The firm had reported a revenue of nearly 41 million Euros in 2020. Clouth will become part of Kadant’s Flow Control reporting segment upon the execution of the deal. The deal is anticipated to take place in the third quarter of 2021.
Furthermore, the CEO of Clouth stated that it took 150 years for the firm in garnering attention for quality doctors’ blades firm. Now it is preparing for its new chapter in the history of the firm. Additionally, the persistent focus of Kadant on serving clients with high-performance products and service is in line with its business approach and places Clouth well for further growth.
Moreover, the first-class management team of Clouth has maintained a strong reputation in its important markets and formed a remarkable presence in Europe, Asia, and North America. A total of 92% of its revenue is from parts and consumables.