Kaydon Corporation (NYSE: KDN) today announced that it has entered into a definitive agreement to purchase all of the outstanding shares of Stoughton, Massachusetts-based Fabreeka Group Holdings, Inc. (“Fabreeka”). The $54 million acquisition will be financed with availability under Kaydon’s existing $250 million credit facility. The acquisition is subject to customary conditions to closing and is expected to close in the second quarter of 2012.
Fabreeka is a leading provider of engineered vibration-isolation and shock-control products, including isolation pads, isolation mounts and highly engineered vibration solutions. Fabreeka’s products control unwanted shock vibration to help reduce wear, maintenance costs and down time for its customers, serving a diverse customer base across numerous end-markets, such as test and measurement, industrial machinery, manufacturing, precision equipment and aerospace and defense. Fabreeka had sales of approximately $27 million in 2011 and will join Kaydon’s Velocity Control Products segment. Kaydon expects the transaction to be accretive within the first twelve months of ownership.
Kaydon Chairman and Chief Executive Officer James O’Leary stated, “We are excited to expand our Velocity Control Products segment with the acquisition of Fabreeka, a recognized leader in the field of shock and vibration control since 1936. Fabreeka will benefit greatly from the expanded reach and resources Kaydon will provide. The acquisition continues our strategy of growing our portfolio of highly engineered businesses with complementary high margin, high value-added industry leaders.”
About KaydonKaydon Corporation is a leading designer and manufacturer of custom engineered, performance-critical products, supplying a broad and diverse group of alternative-energy, military, industrial, aerospace, medical and electronic equipment, and aftermarket customers. This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934 regarding the Company’s plans, expectations, estimates and beliefs. Forward-looking statements are typically identified by words such as “believes,” “anticipates,” “estimates,” “expects,” “intends,” “will,” “may,” “should,” “could,” “potential,” “projects,” “approximately,” and other similar expressions. These forward-looking statements may include, among other things, projections of the Company’s financial performance, anticipated growth, characterization of and the Company’s ability to control contingent liabilities, expectations regarding acquired businesses and anticipated trends in the Company’s businesses. These statements are only predictions, based on the Company’s current expectation about future events. Although the Company believes the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, performance or achievements or that predictions or current expectations will be accurate. These forward-looking statements involve risks and uncertainties that could cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.
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