NEWS BRIEF: Lindon's ProFire Energy is About to be Acquired for $125 Million

If all goes according to plan, Lindon, Utah-based ProFire Energy (NASDAQ:PFIE) will be acquired by Dallas, Texas-based CECO Environmental (NASDAQ:CECO) for $125 million by the end of January 2025.

When the pending acquisition was disclosed by ProFire in late October 2025, the company announced that its Board of Directors had unanimously approved the deal.

The $125 million all-cash price point is based off of CECO's offer of $2.55/share of ProFire common stock, an offer that represents a "... 60.3% (premium) to Profire’s 30-day volume weighted average share price on October 25, 2024."

The actual tender offer to purchase the shares ended early, early yesterday at 12:01am (ET) 01 January 2025, with the expectation that a majority of ProFire's shareholders would either

• Accept the offer as tendered, or
• Not reject the tender offer.

As of market close the day before (Tuesday, 31 December 2024), ProFire had roughly 46.2 million shares outstanding.

Hence, based upon the fact that

• Over 56% of ProFire shares are held by institutions (~25.9 million shares), and an additional
• 26.25% of ProFire shares are held by insiders (~12.1 million shares),

I expect the planned acquisition will be consummated before February 2025.

UPDATE:

CECO announced early this morning that shareholders owning "... 86.31% of the outstanding (ProFire) Shares ..." had agreed to accept the acquisition offer.

As such, the formal acquisition of ProFire will be completed on or before 31 January 2025.

About ProFire and CECO

ProFire is known for its "Burner Management Systems," products that optimize combustion efficiency and safety across industries like power generation, petrochemical, and utilities.

According to its 2023 Annual Report (as filed with the U.S. Securities and Exchange Commission), ProFire generated sales of $58.2 million in 2023 (ended December 31).

However, through the first nine months of 2024, ProFire delivered $46.0 million in revenue (according to its Q3 2024 filing with the SEC).

For comparison's sake, according to its 2023 annual report filed with the SEC (for the year also ended December 31), CECO had 2023 revenue of $545 million.

Further, CECO anticipates "... (2025) revenue (of) between $575 and $600 million, up approximately 10 percent year over year."

According to its website,

"(CECO is an) emissions management, product recovery, and water and gas separation solutions company."

As noted in the ProFire news release, "Upon completion of the transaction, ProFire will become a wholly-owned subsidiary of CECO and shares of ProFire’s common stock will no longer be listed on any public market."

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