Cemtrex Inc., an advanced security technology and industrial services company, has made an exciting announcement regarding its strategic expansion plans. The company has entered into a definitive agreement to acquire a prominent service contractor and steel fabricator, specializing in the industrial and water treatment markets. This synergistic acquisition will allow Cemtrex to broaden its fabrication capabilities, venture into new markets, and expand its customer base into government and industrial verticals.Founded in 1988 in Central Pennsylvania, the service contractor focuses on steel fabrication and contracting, primarily catering to the commercial and industrial water treatment industry. Their expertise lies in providing fabricated vessels and equipment, including ASME pressure vessels, heat exchangers, mix tanks, and reactors, to the water treatment industry. Additionally, their contracting team assists with installation and servicing of fabricated items. With a manufacturing facility spanning over 33,000 square feet and a skilled workforce of fabricators, welders, and field mechanics, the company has established itself as a reputable player in the industry.Saagar Govil, Chairman and CEO of Cemtrex, expressed his enthusiasm about the acquisition, stating, "This acquisition of an established contractor in a growth market is highly synergistic with our Advanced Industrial Services ('AIS') subsidiary." Govil highlighted the potential for expanding fabrication capabilities, entering new markets, and broadening the customer base to include government and industrial sectors that are currently untapped. The increasing demand for water treatment systems and services, driven by factors such as aging infrastructure, water scarcity, and stringent environmental regulations, further adds to the growth prospects of the acquired company.The acquisition brings in an impressive annual revenue of over $11.6 million, with an average adjusted EBITDA of approximately $775K over the last four years. In addition to the immediate boost in revenue, Cemtrex anticipates creating significant value and driving future growth through this acquisition. The strategic move aligns with the company's expansion strategy for its Industrial segment and marks the first of potentially more acquisitions in the future.
Cemtrex Inc., an advanced security technology and industrial services company, has made an exciting announcement regarding its strategic expansion plans. The company has entered into a definitive agreement to acquire a prominent service contractor and steel fabricator, specializing in the industrial and water treatment markets. This synergistic acquisition will allow Cemtrex to broaden its fabrication capabilities, venture into new markets, and expand its customer base into government and industrial verticals.Founded in 1988 in Central Pennsylvania, the service contractor focuses on steel fabrication and contracting, primarily catering to the commercial and industrial water treatment industry. Their expertise lies in providing fabricated vessels and equipment, including ASME pressure vessels, heat exchangers, mix tanks, and reactors, to the water treatment industry. Additionally, their contracting team assists with installation and servicing of fabricated items. With a manufacturing facility spanning over 33,000 square feet and a skilled workforce of fabricators, welders, and field mechanics, the company has established itself as a reputable player in the industry.Saagar Govil, Chairman and CEO of Cemtrex, expressed his enthusiasm about the acquisition, stating, "This acquisition of an established contractor in a growth market is highly synergistic with our Advanced Industrial Services ('AIS') subsidiary." Govil highlighted the potential for expanding fabrication capabilities, entering new markets, and broadening the customer base to include government and industrial sectors that are currently untapped. The increasing demand for water treatment systems and services, driven by factors such as aging infrastructure, water scarcity, and stringent environmental regulations, further adds to the growth prospects of the acquired company.The acquisition brings in an impressive annual revenue of over $11.6 million, with an average adjusted EBITDA of approximately $775K over the last four years. In addition to the immediate boost in revenue, Cemtrex anticipates creating significant value and driving future growth through this acquisition. The strategic move aligns with the company's expansion strategy for its Industrial segment and marks the first of potentially more acquisitions in the future.
