Duravant to Acquire Key Technology in Stock Purchase Deal
Downers Grove, Illinois, USA-headquartered Duravant LLC, a global engineered equipment and automation solutions provider to the food processing, packaging and material handling sectors, announced on January 25 that it has entered into a definitive agreement to acquire Key Technology, a designer and manufacturer of digital sorting, inspection, conveying and processing equipment. The acquisition will significantly extend Duravant’s reach across the food processing sector with new complementary products and applications.
Under terms of the agreement, which has been unanimously approved by Key Technology’s board of directors, Duravant will make a tender offer to acquire all of Key’s outstanding common stock for $26.75 per share, in a cash deal valued at approximately $175 million.
Key Technology’s portfolio of advanced automation systems for food processing and other end markets includes intelligent optical inspection and digital sorting platforms, vibratory conveying lines and process and preparation equipment. With corporate headquarters in Walla Walla, Washington, and facilities in the Netherlands, Belgium, Australia and Mexico, the company serves multinational customers with technical, mechanical, optical and software-based solutions designed to optimize yield, quality and efficiency.
“Key’s culture of customer-centric innovation and their ability to successfully launch new technology platforms has been a driving force behind their impressive growth. Our two organizations share the same unwavering commitment to solving complex challenges for our customers through innovation,” said Mike Kachmer, president and chief executive officer of Duravant.
“We are truly excited and honored to join Duravant, and we have great expectations for the future of our combined teams,” said Jack Ehren, president and chief executive officer of Key Technology. “Duravant’s strong commitment to investment and growth will enable Key to accelerate the execution of our overall strategic plan and even further enhance our customer partnerships.”
Duravant has clients and partners in over 190 countries across multiple sectors including food and beverage, agriculture, household goods, pharmaceuticals, distribution and industrials. With a portfolio of world-class brands and automation solutions, it connects equipment, integration and lifecycle management through the company’s SupportPro services.
“The combined global infrastructure of Duravant and Key will also help us advance our commitment to increased geographic market and new application penetration,” added Ehren.
The acquisition is expected to be finalized during the first quarter of 2018, subject to the tender and acceptance of at least a majority of the outstanding shares of Key common stock as well as other customary closing conditions.