Kadant Inc., Westford, Mass., USA, has agreed to acquire the forest products business of NII FPG Company, Seattle, Wash., for $173 million in cash, subject to a post-closing adjustment. The company also announced that it has increased its revolving credit facility to $300 million from $200 million and intends to finance the transaction through borrowings under the revolving credit facility. 

NII FPG Company designs and manufactures equipment used by sawmills, veneer mills, and other manufacturers in the forest products industry. The company also designs and manufactures harvesting equipment used in cutting, gathering, and removing timber from forest plantations. The transaction is expected to close in July 2017. 

"Our acquisition of the forest products business of NII FPG extends our presence deeper into the forest products industry and complements our existing wood processing product line," said Jonathan Painter, president and CEO of Kadant Inc. "NII FPG is a leader in its markets with a history of stable earnings, a strong parts and consumables business, and a solid reputation as a premium manufacturer of products that have a high impact in customers’ operations. We expect the company will make a strong contribution to our business.

"With more than 50%t of NII FPG’s business coming from parts and consumables, this acquisition will also advance our strategic plan to increase our aftermarket revenue," Painter continued.

The forest products business of NII FPG Company includes two primary manufacturing facilities and approximately 275 employees worldwide, with reported revenue of approximately $81 million for the 12 months ended Dec. 31, 2016. 

Kadant’s products, technologies, and services play an integral role in enhancing process efficiency, optimizing energy utilization, and maximizing productivity in resource-intensive industries. The company has some 2,000 employees in 18 countries worldwide.