Our decentralized operating model is core to our culture. We believe it allows our businesses to be nimble and quick–making decisions locally through close customer contact. Our decentralized model is also an ideal platform for companies that we acquire. It ensures that our businesses continue to operate as successfully as they did prior to our ownership but with the strength of the group behind them.
Kadant businesses provide high-impact, highly engineered products used in industrial processes. Many of our successful acquisitions were family businesses with long operating histories–some over 100 years. Typically Kadant businesses have the following characteristics:
Are market leaders in their core markets
Long standing, deep customer relationships
A history of steady revenue with attractive margins
Strong recurring revenue through a reliable parts or consumables stream
Because we are decentralized, we prefer for management teams to stay on or to have a clear succession plan in place that will allow the business to continue its operating strategy.
Specific target areas for acquisition include:
“Before we became a part of Kadant, we were a private, family-owned business. I will admit that we had some trepidation that the new ownership would change how we run things. We were acquired in 2017 and I can honestly say that Valon Kone operates just as it did before the acquisition. Kadant’s decentralized approach allows us to run the business locally and to make decisions based on our customers and what we are seeing in the market. While we are now part of a much larger company, Valon Kone is still Valon Kone but with the strength of Kadant behind it.”
Teemu Tynkkynen – Sales and Marketing Director, Valon Kone
“For us it was not about selling the company, it was about finding an industry partner to help us grow. Kadant offered a reputable global brand and a group of high integrity people with long term vision. During the acquisition process, I found them nothing but fair, timely, knowledgeable, and transparent.
Kadant leadership through their subsidiaries is supporting our entry to new markets. We are proud to be part of a world class company offering reliable and innovative products and services around the world.”
Bijan Shams – President, Cogent Industrial Technologies
“By joining the Kadant family, Syntron Material Handling has been able to transition our strategy from short to long term. Our employees feel more secure and motivated to help the company succeed, especially knowing that they are part of a company that believes and invests in people. Kadant has supported our growth plans by making capital available for modernizing our factories and encouraging a robust new product development initiative. It is nice to be part of a corporation that takes a long view to business growth.”
Andy Blanchard – President, Syntron Material Handling
“When we were acquired by Kadant we were their first foray outside the pulp and paper equipment market. Carmanah held a dominant position in its market but teaming with Kadant gave us access to low-cost manufacturing and Sales support in markets where we were challenged, including China and South America.
After joining Kadant we were asked to identify market leaders in our industry that would make attractive add-ons. We identified several businesses that fit the profile and the Kadant team began the process of cultivating relationships with the owners of these businesses. Over the next 6 years we acquired 3 of those companies, including market leaders Nicholson Manufacturing and Valon Kone, and have built a new market segment for Kadant. In July of 2019 I moved from Carmanah to the corporate office to head the wood products group, and we continue to look for opportunities to grow this segment.”
Michael Colwell – Vice President, Kadant Inc.
“At the time we were acquired by Kadant, we were a very local manufacturer. While we had been successful in selling to smaller mills, as a small player, we lacked credibility with the major paper producers. Kadant’s strong brand recognition really helped us raise our profile. More importantly, they worked directly with us to improve our quality levels by investing in our facility, our equipment, and in our people. Being a part of Kadant not only helped us to scale our business in China but also internationally through Kadant’s global footprint. We have now been a part of the Kadant family since 2006 and we continue to add new products to our portfolio as Kadant continues its growth into new markets.”
Peter Ma – Vice President of Sales, Kadant Fiberline China
“When we were acquired, it was not the end of an entrepreneurial journey but a new era combining our local business expertise with investment and practices from Kadant that have resulted in long term sustainable growth.The decentralized structure allows us to continue to be entrepreneurial and gives us agility on daily decisions and focus on local customers but from a stronger base. Kadant provided capital investment to improve our facility, added new product lines to our portfolio that added to our sales in the pulp and paper markets, and helped us develop in new industrial markets. Our local team has had the opportunity to share and benchmark best practices from different Kadant businesses around the world which has resulted in us improving how we run our own business. Kadant’s long-term perspective for growth and continued investment in its businesses will help us continue to thrive in the future.”
Rodrigo Vizotto – President, Kadant South America
+1 978 776 2024
+43 664 525 2172