STATESVILLE, N.C. - Kewaunee Scientific Corporation (NASDAQ: KEQU), a prominent player in laboratory furniture and technical product manufacturing, has announced the acquisition of Nu Aire, a Minneapolis-based company, for $55 million. The transaction, which is subject to adjustments, is expected to bolster Kewaunee's market presence and expand its product offerings.
Nu Aire, with its 50-plus-year history, specializes in biological safety cabinets, airflow products, and various laboratory and pharmacy equipment. Its diverse customer base spans life sciences, healthcare, education, and other sectors, positioning the company well in recession-resistant industries.
Thomas D. Hull III, President and CEO of Kewaunee, expressed enthusiasm for the acquisition, underscoring the alignment of the two companies' strengths and the continuation of Nu Aire's legacy under the Kewaunee umbrella. Bill Peters, President of Nu Aire, will maintain his role and join Kewaunee's corporate management team.
The acquisition is seen as a transformative step for Kewaunee, enhancing its product portfolio and market reach, particularly in regions where it previously had no distribution partners. The combined organization aims to address the evolving needs of laboratory environments and capitalize on the ongoing investments in life sciences, healthcare, and education sectors globally.
Legal advisory was provided by K&L Gates LLP, with Carl Marks Securities LLC acting as the lead financial advisor. PNC Bank financed the transaction.
Kewaunee, founded in 1906 and headquartered in Statesville, North Carolina, is known for its comprehensive range of laboratory, healthcare, and technical furniture products. Nu Aire's addition is expected to create operational synergies, improve performance, and foster sustainable growth for Kewaunee.
This news is based on a press release statement, which contains forward-looking statements subject to risks and uncertainties that could significantly impact anticipated results. Kewaunee disclaims any obligation to update these forward-looking statements, which are based on current expectations and involve known and unknown risks.
In other recent news, Kewaunee Scientific Corporation disclosed the outcomes of its Annual Meeting of Shareholders. The company confirmed the re-election of Mr. Keith M. Gehl as a Class II director, with 1,404,874 votes in favor. The appointment of Forvis Mazars, LLP as the company’s independent auditors for the fiscal year 2025 was ratified with significant support, receiving 2,414,204 votes in favor. The compensation of the company’s named executive officers also received advisory approval. These developments are part of the recent updates from the corporation. As per the company's SEC filing, these decisions were made through shareholder voting, a standard practice in corporate governance. Kewaunee Scientific Corporation, known for its specialization in laboratory equipment and furniture, is incorporated in Delaware and headquartered in Statesville, North Carolina.
InvestingPro Insights
The acquisition of Nu Aire by Kewaunee Scientific Corporation (NASDAQ: KEQU) comes at a time when the company's financial metrics paint an intriguing picture. According to InvestingPro data, Kewaunee's market capitalization stands at $91.09 million, reflecting its position in the laboratory furniture and technical product manufacturing sector.
Kewaunee's P/E ratio of 5 suggests that the stock may be undervalued relative to its earnings, which could be particularly significant in light of the recent acquisition. This low valuation is further supported by an InvestingPro Tip indicating that the company is trading at a low revenue valuation multiple. This could mean that investors have an opportunity to buy into Kewaunee's growth story at a potentially attractive price point.
The company's financial health appears robust, with an InvestingPro Tip highlighting that liquid assets exceed short-term obligations. This strong liquidity position likely played a role in Kewaunee's ability to finance the $55 million acquisition of Nu Aire, potentially without overstretching its financial resources.
Despite a significant price drop over the last three months, as noted by another InvestingPro Tip, Kewaunee has shown a high return over the last year, with a 73.81% price total return. This volatility may reflect market reactions to company developments, including the recent acquisition announcement.
It's worth noting that Kewaunee has been profitable over the last twelve months, with a revenue of $202.31 million and an EBITDA of $16.13 million. The company's EBITDA growth of 30.71% is particularly impressive, suggesting strong operational performance that could be further enhanced by the synergies expected from the Nu Aire acquisition.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 8 more InvestingPro Tips available for Kewaunee Scientific Corporation, providing a deeper understanding of the company's financial position and market performance.
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