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Kadant enters wood products market with Carmanah acquisition

Pulp and paper supplier Kadant Inc. is broadening its scope by purchasing a Canadian firm that manufactures equipment for engineered wood panels. Kadant has announced an agreement to acquire Carmanah Design and Manufacturing Inc. for $54…

Pulp and paper supplier Kadant Inc. is broadening its scope by purchasing a Canadian firm that manufactures equipment for engineered wood panels. Kadant has announced an agreement to acquire Carmanah Design and Manufacturing Inc. for $54 million in cash. Carmanah is a global leader in the design and manufacture of stranders and related equipment used in the production of oriented strand board (OSB), an engineered wood panel product used primarily in home construction.

Carmanah also supplies debarking and wood chipping equipment used in both the forest products and the pulp and paper industries.

“I’m pleased to extend our presence into the forest products industry with the acquisition of Carmanah,” said Jonathan W. Painter, president and chief executive officer of Kadant Inc. “Industry analysts expect the annual growth rate of OSB production to be just under 10% per year over the next five years in North America. With more than 70% of Carmanah’s business coming from parts and consumables, this acquisition will also advance our strategic plan to increase our aftermarket revenues.”

Carmanah is based in Surrey, B.C. The company has 73 employees.

Kadant supplies stock-preparation, fluid-handling, and doctoring, cleaning, and filtration products to the global pulp and paper industry.