BATAVIA, N.Y. -- Graham Corporation, a global business that designs, manufactures and sells critical equipment to the oil refining, petrochemical and defense industries, today announced that it has completed the acquisition of management-owned Barber-Nichols Inc. (BNI) for $70.1 million in a combination of 87% cash and 13% stock. The Company also announced it has entered into new credit facilities including a 5-year term loan to finance a portion of the purchase price.
With $56 million in revenue and low-double digit EBITDA margins, BNI designs and manufactures specialty turbomachinery including highly specialized pumps, compressors and fans, and rocket engine turbopumps for critical applications, primarily in the defense and space industries.
Graham acquired BNI for total consideration of $70.1 million comprised of approximately $61.1 million in cash and $9.0 million in equity, or approximately 610 thousand shares at $14.69 per share. The purchase price is subject to typical working capital adjustments. The cash consideration was paid using a combination of $41.1 million of cash on hand and $20.0 million from a new credit facility. The purchase price represents an 11x twelve-month forward Adjusted EBITDA multiple. Following the acquisition, Graham’s total shares outstanding are 10.6 million.
The Company also announced today that Daniel J. Thoren, who was BNI’s chairman of the board and served as president and CEO for 24 years, has been appointed as president and chief operating officer (COO) of Graham Corporation. Matthew Malone, who had been recently named BNI’s president & CEO, has been appointed vice president and general manager- Barber-Nichols for Graham Corporation.
Thoren has served as the President and CEO of Barber-Nichols since 1997. From 1991 to 1997, he held Senior Engineer and Engineering management posts at the company. Thoren earned a bachelor's degree in mechanical engineering from the University of Wyoming and a master's in organizational management from the University of Colorado, Denver.
Malone joined BNI in 2015 as a project engineer focused on rocket engine turbopump design and development. He was promoted to Navy program manager in 2018, overseeing key U.S. Navy programs. Mr. Malone was appointed Vice President of Operations of BNI in 2020. He began his career at GE Transportation where he held a variety of engineering and management positions.
Malone earned his bachelor's in mechanical engineering with honors in design optimization from Pennsylvania State University and his master's in mechanical engineering from Georgia Institute of Technology.