Kadant purchases PaalGroup

Westford, Massachusetts-based Kadant Inc. has acquired all of the outstanding shares of RT Holding GmbH, the parent company of PaalGroup, based in Germany, for approximately €51 million in cash, approximately $58 million. Paal manufactures channel balers and related equipment used to process recyclables and has operations in Germany, the United Kingdom, France and Spain.

“Our acquisition of PAAL broadens our product portfolio and extends our presence deeper into recycling and waste management,” says Jonathan W. Painter, president and chief executive officer of Kadant Inc. “With its strong aftermarket business and emphasis on product innovation, Paal is an excellent fit with Kadant.”

Franzotto Hornung, president and chief executive officer of PAAL, says, “We are excited to join Kadant and become a part of this dynamic organization. Kadant’s global platform and business model offers a number of exciting opportunities to extend Pall’s leading market position in Europe to geographic regions around the globe.”

Paal was founded in 1854 in Osnabrück, Germany. Its primary products include horizontal balers and conveyors used to process paper, plastic and metal. The company employs 193 people. For the fiscal year ended Dec. 31, 2015, Paal’s revenue was approximately €48 million ($54.6 million).

Kadant is a global supplier of high-value, critical components and engineered systems used in process industries worldwide. Its products, technologies and services play are designed to enhance process efficiency, optimizing energy use and maximize productivity in resource-intensive industries. Kadant’s revenue was $390 million in fiscal 2015. The company employees 1,800 people in 18 countries worldwide.