Market Questions Kadant’s Acquisition Strategy After Stock Dip

Kadant Inc. shares experienced a notable decline Wednesday, dropping 2.4% to close at $298.03 as investors reacted negatively to the company’s latest strategic move. The market response came despite the successful completion of Kadant’s $175 million acquisition of Clyde Industries, a specialist in boiler systems.

The all-cash transaction, funded exclusively through Kadant’s revolving credit facility, failed to impress shareholders despite its strategic implications. The deal adds Clyde Industries’ established operations to Kadant’s portfolio, with the acquired company having generated approximately $92 million in revenue during its most recent fiscal year. Clyde employs 400 people worldwide and brings nearly a century of industrial expertise, having been founded in 1924.

Kadant plans to integrate Clyde Industries into its Industrial Processing segment, a division... Read more...