03-04-2023

CECO Environmental acquires Transcend Solutions

CECO Environmental Corp, a leading environmentally focused, diversified industrial company whose solutions protect people, the environment, and industrial equipment, today announced it has completed the acquisition of Transcend Solutions LLC, a Houston-based process filtration solution design and manufacturing company with applications in hydrocarbon and chemical processing.

The addition of Transcend to CECO's Separation and Filtration business platform advances CECO's capability to offer customers around the world a turnkey performance-enhancing engineered solution for process fluid separation and filtration in a wide range of high-performance applications. Transcend is the second acquisition for CECO in 2023, following the previously announced deal for U.K.-based Wakefield Acoustics Ltd. in January 2023 and four transactions in 2022, continuing CECO's steady execution of its programmatic M&A strategy launched in early 2022.

"Transcend Solutions has been a key supplier-partner for CECO. We have a great relationship with the company and its management team, and they are already aligned with our Separation-Filtration strategy," said Todd Gleason, Chief Executive Officer, CECO Environmental Corp. "Transcend is a well-managed company led by a very capable team of filtration and separation industry veterans that brings advanced engineering talent with a strong understanding of end-user needs, giving us in-house capability in process design and filter element design."

Added Gleason, "Transcend checks all the boxes for CECO when we evaluate strategic acquisitions and where to deploy our capital. Transcend provides differentiated, high-value advanced solutions to a broad set of markets and applications. The company has the potential to double revenue in a three-year period when plugged into the existing CECO network of global customers and locations. Transcend improves our short-cycle and long-cycle mix and has highly accretive operating margins. And finally, we have completed this transaction with very attractive pricing based on both a trailing and forward basis."

"We see many opportunities to expand our reach into midstream oil and gas, LNG, hydrocarbon processing, and chemical processing applications, with the greatest opportunity for growth in natural gas and green energy markets. The acquisition fits perfectly within our strategy to enable sustainable solutions and growth in the energy transition and renewable energy markets while pursuing higher margin aftermarket service opportunities at facilities around the globe," said David Taylor, General Manager, CECO's Separation and Filtration platform.

Transcend's current President and Chief Executive Officer, Matt Thundyil, Ph.D., will remain with the company as General Manager under CECO's Separation and Filtration platform to lead the business and drive strategic growth. "CECO provides the balance sheet and customer access to bring Transcend's technology and people to bear on solving critical contamination challenges in the process industry. Working even more closely together, I am confident in our ability to accelerate growth," said Dr. Thundyil.