Crawford United Corporation (OTCPK:CRAW.A) acquired substantially all the assets of Knitting Machinery Corp. for $1.4 million.
May 02, 2022
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Crawford United Corporation (OTCPK:CRAW.A) acquired substantially all the assets of Knitting Machinery Corp. (KMC) for $1.4 million on May 1, 2022. Pursuant to an Asset Purchase Agreement, Crawford acquired the assets of KMC on a debt-free basis in exchange for $0.25 million in cash and the issuance by Crawford of a total of 38,462 of its Class A Common shares. The purchase price is subject to adjustment with cash payment is subject to a total or partial refund to the extent KMC's earnings before interest, tax, depreciation and amortization (EBITDA) is not equal to or greater than the amount of the cash payment for the twelve-month period following the closing date of the transaction. Crawford also purchased $100,000 in cash as part of transaction. At closing, Crawford will pay off the payable funded Indebtedness per the pay-off letters delivered to Crawford. The closing of the agreement is conditional upon Crawford shall have received delivery of the purchased assets and conducted at its expense a physical count of the purchased assets, including inventory and equipment; KMC shall have received the third-party consents, approvals and/or authorizations; Crawford shall have received all requisite resolutions or actions of KMC's equityholder and/or board of directors approving the sale of the purchased assets; Crawford shall have received a fully executed assignment of Intellectual Property Rights from KMC and others.
The acquisition is expected to add less than $2 million in annualized revenue and be immediately accretive to earnings. Terrence F. Doyle of Calfee, Halter & Griswold LLP acted as legal advisor to Crawford and Brian J. Green of Shapero & Green LLC acted as legal advisor to KMC
Crawford United Corporation (OTCPK:CRAW.A) completed the acquisition of substantially all the assets of Knitting Machinery Corp. (KMC) on May 1, 2022.
Crawford United Corporation is a holding company providing specialty industrial products to diverse markets, including healthcare, aerospace, defense, education, transportation, and petrochemical. The Company's Commercial Air Handling Equipment segment is engaged in designing, manufacturing, and installing customized, large-scale commercial, institutional, and industrial air handling solutions, primarily for hospitals and universities. The custom air handling equipment is designed, manufactured and installed under the brand names FactoryBilt and SiteBilt. Its Industrial & Transportation Products segment provides precision components to customers in the aerospace and defense industries, as well as a full line of branded metal, silicone, plastic, rubber, hydraulic, marine and fuel hose products. It also offers materials engineering solutions. Its engineered coatings provide a protective shield for aircraft engine components, locomotive parts, dental implants, and other applications.