Profire Energy, Inc. (NASDAQ:PFIE) shares are trading higher on Tuesday after the company inked a definitive deal under which CECO Environmental Corp. (NASDAQ:CECO) will acquire Profire in an all-cash transaction at a price of $2.55 per share.

The offer price reflects a 46.5% premium over Profire's October 25, 2024 closing share price of $1.74 and a 60.3% premium over its 30-day volume-weighted average price as of that date.

The offer will remain open for an initial period of 20 business days, with possible extensions as needed.

Approved unanimously by Profire's Board, the transaction values Profire's equity at roughly $125 million, with an enterprise value of approximately $108 million.

Following this, Profire's common stock will be delisted from public markets. The transaction is expected to close in the first quarter of 2025.

For 2024, Profire projects sales exceeding $60 million with adjusted EBITDA margins of around 20%.

Todd Gleason, CECO's Chief Executive Officer, said, "With an installed base approaching 100,000 burner management systems and a growing industrial market product offering, we look forward to accelerating their global market expansion and introducing their high-efficiency solutions to more customers in industrial air and water."

Cameron Tidball and Ryan Oviatt, co-CEOs of Profire stated, "The combination of our well-established leadership in niche energy and industrial mission critical applications with CECO's proven track record of acquiring and investing in companies to enhance their growth and create scale will unlock even more value for all constituents."

As of September 30, 2024, CECO's cash and cash equivalents stood at $38.9 million.

Price Action: PFIE shares are up 46.8% at $2.51 at the last check Tuesday.

Image via Shutterstock

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