08:14 AM EDT, 10/29/2024 (MT Newswires) -- CECO Environmental ( CECO ) signed a definitive agreement to acquire Profire Energy ( PFIE ) for $125 million in cash, the companies said in a joint statement Tuesday.

Under the terms of their agreement, the companies said a subsidiary of CECO will launch a tender offer for 20 business days to acquire all of Profire's issued and outstanding shares for $2.55 per share in cash. CECO will acquire Profire's remaining untendered shares at the same price after the tender offer through a merger between the CECO unit and Profire, with Profire as the surviving entity, according to the joint statement.

Profire will become a wholly owned subsidiary of CECO and will be taken private after the transaction's closing, which is expected in Q1 next year, the companies said.

CECO shares were down about 5% in recent Tuesday premarket activity, while Profire's stock went up more than 46%.

Price: 25.00, Change: -1.31, Percent Change: -4.98