K-Tron International has acquired privately-held Premier Pneumatics, a manufacturer of pneumatic conveying and bulk handling equipment. The purchase price was $27.565 million, all of which was paid in cash, including a $2 million escrow. The purchase price is subject to adjustment based on Premier’s net working capital on the closing date. Premier, based in Salina, KS, has manufactured and marketed a complete line of components for pneumatic conveying systems for more than 50 years and is well-known for its Aerolock rotary valve, Series II 2400 vacuum receiver, blower package and diverter valve product lines. Premier is also known for its engineered systems for rail car and truck unloading, as well as for its storage-to-production-line transfer systems, which are used in the plastics, compounding, food and chemical industries. The company has a large installed base of systems, resulting in significant repeat business from established customers. For the 12-month period ended August 31, 2006, Premier’s unaudited revenues were approximately $25.8 million.
Top operating management of Premier is expected to remain following the acquisition, including Mike Wedel, vice president sales and marketing, Todd Smith, vice president engineering and manufacturing, and Gary Lee, vice president finance. Kevin Bowen, senior vice president of K-Tron responsible for the K-Tron Process Group, will also serve as president of Premier.
The acquisition of Premier significantly expands the scope of K-Tron’s activities in the pneumatic conveying business, which it entered in 1997, and in the solids feeding business where K-Tron has been a leader for many years with its volumetric and gravimetric screw and belt feeders. The combination of these two market leaders will enable both K-Tron and Premier to offer their customers integrated pneumatic conveying and feeding systems with engineering, manufacturing, commissioning and after-sale services from a single source, something that is not widely available today.