Ceco Environmental Corp. (Nasdaq: CECE) is buying PMFG (Nasdaq: PMFG) for $150 million.
PMFG, headquartered in Dallas, provides equipment that aims to reduce air pollution, separate and filter gases and liquids, and control industrial noise.
Ceco is an environmental, energy and fluid-handling technology company. The group has made other acquisitions, including Met-Pro Corp. in 2013.
The deal is expected to close in the third quarter. Under the terms of the agreement, Ceco will buy PMFG's common stock for $6.85 per share. Before the deal was announced, PMFG's shares closed at $4.62.
The deal gives Ceco one of the largest product portfolios in the industry, the company says. The buyer will combine its silencer technology, called Aarding, with PMFG's similar technology, called Burgess Manning. Ceco also expects the deal to help it save $15 million over the next two years.
Bank of America Merrill Lynch has committed financing. Jones Day provided legal advice to PMFG.