August 4, 2008
CECO ENVIRONMENTAL ACQUIRES
FLEXTOR, INC. AND AVC SPECIALISTS, INC.
CINCINNATI, OHIO, August 4, 2008 - CECO Environmental Corp. (NASDAQ: CECE),
a leading provider of air pollution control and industrial ventilation systems,
announced today that it has agreed to acquire, in two separate transactions,
Flextor, Inc. of Montreal, Quebec and AVC Specialists, Inc. of Moorpark, California.
Both acquisitions are all cash transactions.
Flextor is a provider of engineered-to-order dampers and expansion joints for the
power, natural gas, cement, smelting, incineration, and other industries. Flextor
derives a large percentage of its business from sales outside of North America and
has subsidiaries in both Chile and Brazil.
AVC Specialists is an electrostatic precipitator components manufacturer that also
has a field services division. It serves the power, refining, petrochemical, pulp
and paper, cement, and other industries. AVC sells its products and services
throughout the United States.
Rick Blum, President and Chief Operating Officer, stated, "We are delighted to have
both of these fine companies as the newest members of the CECO family. Flextor is
essentially in the same business, though mostly in different geographical markets,
as our Effox subsidiary. We intend to operate those two companies together as one
operational entity. We see tremendous opportunities for growth internationally in
our damper and expansion joint product lines. The acquisition of Flextor gives us
a jump start toward achieving those objectives. Their international experience is
extensive. AVC Specialists will operate as a subsidiary of Fisher-Klosterman, the
company we acquired in March of this year. AVC fits perfectly with the operations
of Fisher-Klosterman's Buell APC division. Working together, Buell APC and AVC will
enable us to grow our parts and services business which sells to the owners of the
large installed base of electrostatic precipitators in a wide variety of industries."
Phillip DeZwirek, Chairman and Chief Executive Officer, commented, "Flextor expects
to have revenues in the fiscal year that it is just completing of approximately $15
million. AVC had revenues in its last fiscal year of approximately $3.5 million.
We expect that both of these acquisitions will be accretive to both CECO's revenues
and earnings. The acquisition of Flextor fits in with our goal of expanding our
international business. The acquisition of AVC increases our traditionally high
margin parts business."
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