M&A · Energy · Oil & Gas Field Machinery & Equipment
Ceco Environmental Corp to acquire Profire Energy Inc
Announced Oct 29, 2024 · Closed Jan 3, 2025
Deal value$125MEV $116M
Premium46.5%To unaffected price
EV / Adj. EBITDA10.6x2.0x EV / Revenue
ConsiderationAll cash$2.55 per share
Transaction
- Acquirer
- Ceco Environmental Corp (CECO)
- Target
- Profire Energy Inc (PFIE)
- Buyer type
- Strategic
- Offer price per share
- $2.55
- Enterprise value
- $116M
- Status
- Closed Jan 3, 2025
Deal protections
- Break fee (target pays)
- $4.4M · 3.5%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Not disclosed
- To the target
- Stephens
Sector context · Energy
- Comparable deals
- 38 in the prior 24 months
- Premium
- 46.5% vs. 16.6% sector median
- EV / Adj. EBITDA
- 10.6x vs. 7.1x sector median
- Break fee
- 3.5% vs. 3.0% sector median
Timeline
- AnnouncedOct 29, 2024
- Tender offerOct 29, 2024
- ClosedJan 3, 2025
Valuation · fairness opinions
Trading comparables$1.23$2.50
Precedent transactions$1.45$2.33
Premiums paid$2.35$2.87
Leveraged buyout$1.99$2.61
Leveraged buyout$2.34$2.97
Offer $2.55
Implied value per Profire Energy Inc share by analysis · DCF discount rate 13.9%–15.9%.