Critical components and engineered systems provider Kadant Inc. (KAI) recently announced that it has completed the acquisition of Balemaster, a leading manufacturer of horizontal balers and related equipment, in an all-cash deal of $54 million.
With this buyout, Kadant will gain access to Balemaster’s expertise in the horizontal balers manufacturing space. Notably, Balemaster reported revenues of about $30 million for the year ended June 30, 2021. Post the buyout, Balemaster will become a part of Kadant’s Material Handling reporting segment.
The CEO of Kadant, Jeffrey L. Powell, said, “Our acquisition of Balemaster expands our presence in the secondary material processing sector and creates new opportunities for leveraging our high-performance balers produced in Europe.” (See Kadant stock chart on TipRanks)
Recently, Barrington analyst Christopher Howe reiterated a Buy rating on the stock with a price target of $230 (14.2% upside potential). Overall, the stock has a Moderate Buy consensus rating based on 1 Buy.
Kadant scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares of the company have gained 71.1% over the past year.
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