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DALLAS, March 18, 2014 (GLOBE NEWSWIRE) -- PMFG, Inc. (the "Company") (Nasdaq:PMFG) today announced it has reached a definitive agreement to acquire substantially all of the assets of Combustion Components Associates, Inc. ("CCA"), a leading provider of in-furnace and post-combustion control technologies. The acquisition is subject to customary closing conditions and is expected to close by April 30, 2014. The purchase price is approximately $8.9 million in cash plus performance-based contingent payments and will be funded with cash on hand.
Located in Monroe, Connecticut, CCA is an industry leader in combustion control technologies used to reduce NOx, particulate matter (PM), unburned carbon and CO emissions at variety of facilities including utility power plants, paper & pulp mills, chemical plants, oil refineries, and ethanol plants. CCA employs approximately 30 employees and had 2013 revenue of approximately $14 million. As of November 30, 2013, CCA's order backlog was approximately $3 million.
With its substantial knowledge of combustion and NOx formation processes, CCA designs, engineers, and installs highly efficient, cost-effective systems for combustion modification, fuel conversions and post-combustion NOx control for both new and existing sources. CCA also supplies the patented TRIM-NOX® urea-based SCR technology, as well as SNCR products designed to reduce NOx emissions on stationary combustion sources. In addition to system installations, CCA provides combustion optimization services such as airflow and fuel flow testing and balancing. CCA also provides diagnostic testing, boiler tuning and consulting services.
CCA has an extensive customer base, principally in the United States, with systems installed on over 275 units burning a variety of fuels, including coal, fuel oil, waste fuels, biomass and natural gas.
Peter Burlage, PMFG's Chairman and Chief Executive Officer, commented, "We are proud to bring CCA into the Peerless family and further expand our industry leading energy technology portfolio. Peerless is a recognized leader in the reduction of NOx emissions through the use of selective catalytic reduction ('SCR') systems. These systems are critical components used to convert NOx emissions into environmentally friendly nitrogen and water. NOx emissions are harmful byproducts generated by the combustion of hydrocarbon fuels such as coal, gasoline, natural gas, wood, grass and grain. With over 800 Peerless SCR systems installed around the world, we believe we are one of the largest suppliers of these products. With the addition of CCA, we gain a strong presence in the combustion modification market with technical solutions for both pre- and post-combustion. CCA will be combined with our existing Environmental Systems business and will expand our capabilities beyond natural gas applications. This is also part of our global growth strategy given that outside of the United States emissions control standards for natural gas combustion aren't as stringent and CCA's products will broaden the opportunity for our Environmental Systems division."