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Kadant acquires Nicholson and Valon Kone

20.09.2017 − 

The US plant manufacturer Kadant completed its acquisition of the Forest Products division from NII FPG, on 5 July. The transaction, which was agreed on 24 May, has a total volume of USD173m in cash, subject to an adjustment to the purchase price after closing.
Kadant acquired all of the shares in the Canadian firm Nicholson Manufacturing and in finnish Valon Kone as part of the transaction. Both companies specialise in developing and making rotary debarking technology, in-cluding for use in the sawmill, veneer and OSB industry. Since acquiring Madill Equipment in 2011, Nicholson has also offered wood harvesting machinery. Kadant said that the two companies operate two main product facilities with a total of 275 workers. They generated revenues of about USD81m in the 2016 financial year.

Both companies will become part of Kadant’s Wood Processing Systems division in future. Besides offering stranders for the OSB industry and the associated feeding systems, it also supplies chippers and screening machinery. Debarking technology is also part of its portfolio, which is sold under the Fuji-King name. The divi-sion generated revenues of USD36.9m and recurring pre-tax profits of USD8.3m in the 2016 financial year.

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